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To: zonder who wrote (7258)11/27/2002 1:07:32 PM
From: Kirk ©  Read Replies (1) | Respond to of 95515
 
Maybe I didn't make the point right. I did say it is illegal for an insider to short. The reason is they have inside info.

Still, the point I tried to make is you don't want someone working for you to be betting against your success.

Insiders sell all the time to diversify. Big difference than to bet against a company.

Shorts are well know to gang up on the smaller names then do a concerted attack including spamming the message boards with negative posts... They work together to drive the price of the stock down by scaring the longs out.

No, my point is valid. You don't want someone you are paying to bring value to a company working against you. This happens if they are shorting the stock at a level they make more by the stock going down than up.

Kirk

PS I am not talking about strategies like colars where they go short to lock in option gains until they come due. I am taling about a net short position at a significant level.