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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Roger A. Babb who wrote (5589)	3/26/1998 7:44:00 PM
From: Ploni	Read Replies (2) \| Respond to of 18691

Roger, that accounting game infuriates me, as well. It's no secret: it's been reported recently, but the investing public is probably still ignorant. However, the analysts must be aware of it, and are ignoring it. I guess they are simply afraid to move their clients' money into cash, and miss additional run-ups. I wouldn't be surprised that the analysts' personal accounts are all cash. Regarding those who say, "The bull market won't end until all the bears convert," have any shorts actually survived such amazing bull runs in the past, or did all cover due to mental or financial duress? I.e., did anyone actually make money in the Crash of '29?

To: Roger A. Babb who wrote (5589)	3/26/1998 8:31:00 PM
From: Agamemnon	Read Replies (1) \| Respond to of 18691

Roger or anyone, TAX question(this might have been asked previously) Can schedule D be used to list short transactions? I was going to put the short $ amount in the SALES price column & the cover $ amount in the cost column but the gain loss column will come out negative on a profit. I would much appreciate any help.

To: Roger A. Babb who wrote (5589)	3/26/1998 8:58:00 PM
From: Pancho Villa	Respond to of 18691

>Pancho, I wonder how long it will be before investors catch on to the accounting subtrifuge going on in this market. < Apparently, the people who suffer most frequently with all the creative accounting are the shorts, and we are a minority. IMO A significant fraction of investors are following "Zacks like momentum strategies", they don't worry about absolute but relative valuation and as long as the company meets the quarter they hold, dumping on bad news. of course, once in a while S... hits the fan a disasters like OXHP happen; longs get burned, and a few shorts make money [the ones getting in late or patient enough to hold, quite a few shorts suffer as the stock goes up and cover before the truth comes out]. So to go back to your question, I am not so sure some of the sophisticated/big players in the market don't know about this, IMO they just don't care! Of course, I do not want to give the impression that most companies cheat with the numbers, I would like to think that we are talking about a minority here. However, the type of companies that are probably more tempted to cheat are does with poor prospects; precisely the type of company shorts tend to be attracted to. Bottom line: Bob it looks like we are stuck! Pancho

To: Roger A. Babb who wrote (5589)	3/27/1998 10:14:00 AM
From: Mr Logic	Respond to of 18691

Roger, >>the accounting subtrifuge going on in this market.<< ...and how about the huge liability of share option schemes that don't appear on the books but mean cash or dilution when they are cashed in?