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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: James Clarke who wrote (3483)	3/9/1998 10:48:00 AM
From: Kapusta Kid	Respond to of 78576

CPQ, Dell, Gateway, et al, are all great LONGTERM shorts. This is now a commodity business destined to go the way of the TV manufacturers. If you have the stomach and the bucks to withstand the inevitable rallies, short them...Pete

To: James Clarke who wrote (3483)	3/9/1998 6:49:00 PM
From: Michael Burry	Respond to of 78576

I actually tried to short Dell Friday afternoon, but the order didn't go through in time (although my computer said there were two minutes left, the market was "fast moving" and mine wasn't filled in time - figure that one out). I saw it go back to near its high at 138 1/2 and just couldn't stand it any longer - it was too obvious a short. Well, I was right. Today it stands at about 126 pre-split. My idea of shorting is to start positions on value/technical basis, but exit on pure technicals. That's how I'm doing it. I haven't had my head handed to me shorting anything yet, because I short at technical inflection points with tiny buy-stops. My buy stop on Dell was 140, or less than a 2% loss. I'm not shorting anything else right now - I want future ones to be as obvious as Dell. IOW, I still want the margin of safety in the short - both technical and valuation tools have to be extreme. I look at it as arbitration and special situations - a toppy market tool for value investors who have the inclination. Mike