Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Osicom(FIBR) -- Ignore unavailable to you. Want to Upgrade?

To: James Strauss who wrote (4823)	1/25/1998 4:58:00 PM
From: craig crawford	Respond to of 10479

<< If I buy the stock at 5.00 and it goes to 0.00 I lose 5.00 per share... If you Short the stock at 5.00 and it goes to 10.00, 15.00, 20.00 or higher you do not have a ceiling to your loss if you don't cover along the way... The odds favor the longs... >> If I short FIBR and it goes to 10 and I cover I am no worse off than someone who bought at 5 and FIBR went to zero. But now I suppose you are going to tell me that FIBR is going to gap up to $30/share when Cisco buys them out, denying me a chance to cover at 10?

To: James Strauss who wrote (4823)	1/25/1998 5:52:00 PM
From: Mama Bear	Respond to of 10479

>>>If you Short the stock at 5.00 and it goes to 10.00, 15.00, 20.00 or higher you do not have a ceiling to your loss if you don't cover along the way... The odds favor the longs...<<< Of course that's theoretical, not practical reality. And it's only if compared to a cash account long holding is a short position is more risky, but compared to a margin account long, the risk is equal. You can't short in a cash account, so it's an apples/oranges comparison to say you can only lose 100% of your investment long. Since we have tallked about DIGL today, suppose you had bought DIGL on margin at 13. Well, you woke up Friday morning with the stock trading at ~2 1/2. You put up 6500, have a debt of 6500, but your stock can only be sold for 2500. Even if we use the close of 4 15/16 (it was a great scalp) you can only get 4937.50. You have a debt of 6500. You have what is called negative equity. You've lost 123% at 4 15/16. Anyone here have long positions in a margin account? Barb