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

To: Allan F who wrote (6514)	4/8/1998 7:35:00 AM
From: santhosh mohan	Read Replies (1) \| Respond to of 18691

<< The beauty of it is the oppurtunity cost of shorting is zero, so I can wait a year. Unlike the fellows buying on margin.>> Allan, am curious about this statement. Even shorting involves equity margin being tied up, so there is an opportunity cost. Also, when the shorted stocks go up, you can face margin calls. Example, Pancho shorts AOL at $110 pre-split, will face a margin call at $127 (ignoring any dividends paid by the stock) if there are no off-setting gains in his account.