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Strategies & Market Trends : Consumer Portfolio (CPSS) Overbought! -- Ignore unavailable to you. Want to Upgrade?


To: Arthur Marigold who wrote (51)3/11/1998 6:24:00 PM
From: bob yahnke  Read Replies (1) | Respond to of 112
 
Arthur, short selling happens when someone sells a stock for which they do not own yet in hopes to buy it back at a lower price. So they sell first and buy back later. Now with 1.4 mil. shares short, that means that 1.4 mil. shares will have to be purchased in order to cover their short position or close out their position. That's a lot of stock to be purchased with only a 5 mil. float on cpss. Enjoy the ride$$$!



To: Arthur Marigold who wrote (51)3/14/1998 11:37:00 AM
From: Mack  Respond to of 112
 
Arthur,

If you buy a stock for $10 and it goes to $0 you lose $10 dollars.

When you short you borrow a $10 stock and sell it right away hoping it goes down.

You must now buy it back eventually and return to the lender. Imagine your panic if this stock starts going up; if it goes to $30 you're out $20, $40 your out $30. This panic buying is called a 'short squeeze'.

Hope this helps,

DOWNTOWN