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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?


To: oexwa who wrote (3675)2/26/1998 11:21:00 PM
From: Ploni  Read Replies (1) | Respond to of 18691
 
Subject: UNP

Charles S. Stein mentioned this one at year-end. He suggested their
problems would be worse than expected, but he was hesitant to short it because he would have to pay the dividend.


Thanks for the plug, but I can't take the credit. I think Ted Odell was the first to mention it:

Message 3050657

I was hesitant to short it, as I had better prospects in mind, such as YHOO, ITWO, SEBL, etc. (sob!)
techstocks.com

The stock may actually be a better short now. Cutting dividends is one of the most dastardly things a company can do. There are retirees who were depending on those funds to survive, and now they'll be forced to eat cat food. The company will also be selling stock, to create some dilution for their stockholders. Why is it that companies think "bigger is better," and end up biting off more than they can chew with these takeovers?