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Microcap & Penny Stocks : ACRT about to move to new highs -- Ignore unavailable to you. Want to Upgrade?

To: Goulds who wrote (2176)	3/4/1998 5:49:00 PM
From: Jean-Philippe Chevalier	Read Replies (1) \| Respond to of 7054

One who is short in the stock has borrowed it from someone. He has never owned the stock. He is required to buy the stock at some point to cover his short position. To lose money selling on the rise would require a purchase at some point, say 25 in the case of ACRT, then the stock tanks to single digits. (We hope this long position is not on margin) Then at some point we will assume that the air conditioner business takes off and the stock begins to rise. Then our theoretical investor my elect to sell his stock at say 16 because he does not believe the stock will return to 25 on the a/c business alone. In this case it would be possible to lose selling on the rise, but unlikely because most investors will jump off a sinking ship and take their chances with the fishes. If they held through all of this, they would likely have the confidence in the company returning to its former glory and get burned that way. A short, however, cannot sell his position at all but he may elect to sell in order to add to his position.