To: Ward Nicholson who wrote (5921 ) 3/2/1998 9:24:00 PM From: flightlessbird Respond to
Ward: As always I found your thoughts well-spoken. If you take the time to read through much of the other KRY clutter here, you would find various other shorters who feel they have such control over this stock that they would not even answer my question as to where they will set their stop loss if KRY continues to rise. "Unthinkable" was their response. *sigh* Tough lessons to learn. As for me, I was in KRY at an average of about $4.75US, so I have a limited loss here, i.e., I can only lose everything and I basically view this play as not much different than an all-or-nothing option (only without the time constraint). But anyone who shorted at $5, 6 or even 7US, could lose a whole lot more than just the full amount depending on developments in Venezuela coupled with 6 million declared/undeclared other shorts potentially covering, i.e., covering at $15 could result in a 200% loss for some whereas I am limited to a 100% loss on the downside (not that I think that has ANY chance of occurring and I'd probably be out at $3). I find it truly unbelievable that anyone could hold a short position without a stop loss in place on a play like this. Though, quite personally, I suspect if the longs prevail, the move could take out stop losses and then some. Just the ever-optimist that I normally am. A good short candidate I believe is Amazon. Unbelievably overvalued and overhyped. Won't show any MODEST earnings until late 1999, maybe even 2000 and likely will receive significant intense competition from Borders/Barnes and Noble. Also, currently soaring on general internet stock hype like DoubleClick. Value is WAAAAAY out of line with expectations. When that house of cards comes crashing down, should be ugly. Should be like Rambus from 90 to 40. That's my short candidate. KRY is about as far from a short candidate as I could find. Only thing left to do with KRY right now is wait. Thanks again for your thoughts Ward. Good luck with CA.
