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

To: Neil_L who wrote (6885)	4/13/1998 10:07:00 PM
From: Roger A. Babb	Respond to of 18691

Neil, re LEAP. I have a few "stupid" investment rules that I have found to be profitable over the years: 1. Short floorless convertibles. 2. When either the bulls or the bears get obnoxious, they are probably wrong. 3. Short companies making "shareholder rights" announcements. 4. Short companies where shareholders give up right to approve issuance of shares. 5. Short companies making a press release saying they don't know of any reason for their stock to be moving down. 6. Short companies making a press release saying they don't know of any reason for their stock to be moving up. LEAP violated rule #6 and earned my short at 7 1/4. All companies want their stock to go up and thus would confirm any good news rumors. Such a press release means that there is probably an "untrue" rumor driving the price up and the press release is a subtle denial of the rumor. On the other hand, companies violating rule #5 are either corrupt, inept, or both. (Of course they know why their price is going down, unless they are inept)