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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: Stuart Schreiber who wrote (6594)	11/26/1997 6:28:00 PM
From: Jack Zahran	Respond to of 31646

>> those shorts are friends not foes. There is a lot of truth to that statement. When there are shorts in a good stock, they help to keep a stock stable. Why? because as the stock swings down on no news or for no good reason, they do their cover buys and pick it. They add stability and ensure that a good stock will not have huge swings. When negative news comes out, they profit big time as they should, but help to keep liquidity in that stock as they buy shares from investors looking to get out (the longs lose, but not as badly). If their is good news then the shorts lose and lose big time as they run to cover buy. It is a whole lot riskier to be short.