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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis -- Ignore unavailable to you. Want to Upgrade?

To: taxikid who wrote (887)	2/27/1998 9:29:00 AM
From: Q.	Read Replies (3) \| Respond to of 2506

Try looking at the initial post that established this thread, which includes the following definition: A broken stock is defined as having ugly financial statements plus a very low RS (relative price strength). The co. is often struggling to stay afloat. Fundamentals typically include negative cashflow and earnings, plus low levels of working capital or shareholders equity. A small market cap < $150 M is of greatest interest, as it places the troubled co. at risk of failing due to an inability to raise equity.... If you want to argue that one should not short stocks of this sort, you may certainly do so. But I don't see how you can argue what the thread is supposed to be about.