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Gold/Mining/Energy : Crystallex (KRY) -- Ignore unavailable to you. Want to Upgrade?

To: Peter Moss who wrote (5765)	2/25/1998 11:36:00 PM
From: flightlessbird	Read Replies (1) \| Respond to of 10836

Peat Moss: the shorts are sinking to new lows everyone. Please permit me elementary shorting 101: I have 10000 shares of KRY at $7 (for even numbers sake). If KRY goes to $10, I make $30k (3 x 10,000 = 30,000) If KRY goes to $4, I lose $30k (-3 x 10,000 = 30,000 loss) Now if I have 10,000 shares long on KRY but short 1000 shares, what happens? If KRY goes to $10, I make $27k because 3 x 10,000 = 30,000 but you must subtract the $3000 loss from shorting (-3 x 1000 = $3000 loss) 30,000 - 3000 = 27000 If KRY goes to $4, I lose $27k because (-3 x 10,000 = 30,000 loss) but you must add 3000 gain from the short position (3 x 1000 = 3000) 30,000 loss plus 3000 gain = 27000 loss Now if I simply sold 1000 of my 10,000 long shares of KRY, I would have 9000 shares of KRY which would ALSO result in a gain of $27k if KRY went to $10 or a loss of $27k if KRY went to $4, i.e., THE EXACT SAME RESULTS AS YOUR PROPOSED SHORT HEDGING POSITION. In essence, you are simply asking me, "hey you might want to sell 10-15% of your long position to hedge against loss". Can you people believe how boneheaded the shorts are that TWO OF THEM both think that you can hedge a long position by shorting shares? TWO OF THEM!!! Can you bonehead shorts see why my broker would look at me like I'm nuts? I tell you what, why don't you call your broker tomorrow and tell him that you want to hedge your short bets by going long for 10-15% and see what he says. "So you want to cover?" You'll say no I want to go long. He'll say "Same thing as covering." Can anyone else here believe that I have to be this elementary to teach 2 short idiots about a very basic investing concept. This, perhaps more than any other thing I have seen posted, tells me that the people carrying short position are absolutely either high on dope or just flat out idiots (more likely both). Pete Moss and Charred, please short away. Short away. Short away. Short away. For all the irritation you have caused this thread, you deserve to lose a very large stake. I can't believe I have stooped to this level in responding. My apologies to all longs.