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Biotech / Medical : IMNR - Immune Response -- Ignore unavailable to you. Want to Upgrade?

To: Robert DeHaven who wrote (324)	3/31/1998 7:35:00 AM
From: Greed Is Good	Read Replies (1) \| Respond to of 1510

I heard there was a news report on CNN last night about a research group that identified an AIDS treatment found in pregnant mice. This cure also has anti cancer capabilities, though I believe they are 3 years behind IMNR. Below $10 is really starting to piss me off..

To: Robert DeHaven who wrote (324)	3/31/1998 12:40:00 PM
From: Easy Mark	Respond to of 1510

There are at least two reasons you might consider shorting IMNR. One might at first think that the potential for a 2-3x upward movement is too risky to be short. However, short sellers do not "short and hold" (e.g. there is no equivalent to the "buy and hold" strategy). They short and then balance their book. Thus, the issue for a short seller is how long are you exposed to the upward price risk. Two ways to manage that risk are apparent. First, if your basic position is long, you might still use it as the base for selling 20% of your position above $15/share and buying it back when the price is below $10. While not a true short it is the equivalent and lets you take both short term profits (at 38% taxation), and preserve long-term capital gains (at 20% taxes). Second, if you have the opportunity to short a portfolio of 5-10 stocks, you can afford to take the risk for periods of time when the probability of the event occurring times the attendant loss is lower than the expected value due to the anticipated volatility without the event occurring. With several stocks in play, you can play the averages, and even a very bad loss on one stock doesn't wipe out the gains. In fact, the very presence of huge upside price movement is what leads to significant short selling profit potential. The reason is the risk scares away the short sellers that would normally operate to keep a lid on "irrational exuberance".