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

To: Dale Baker who wrote (10079)	6/16/1998 10:37:00 AM
From: Marconi	Read Replies (1) \| Respond to of 18691

Hello Mr. Barker: Thank you for the explanation. Buying and selling at the same price is what I would advocate doing with volatile stocks--HTCH for one as of recently around 27, now around 22, with the expectation of it going downward before upward, and legging out of the downside once their TSA program appears to work. The Asian effects were swifter in discounting HTCH than I had expected. I think there is room to run to the 16-18 range, unless they really have fumbled the ball on TSA--then it could fall much lower. I think they bet the company on TSA and have gone through record capital for them trying to turn it around, with their latest round of financing being a $100+ M 5 convertible multi-year note to help pay for short term expenses. This is the strategy of legging out of the extremum starting from a midrange price-point. I hope to become wiser in spotting these kinds of situations. The relentless stuffing of dollars into this market should be changing now, making for a mixed bag of tricks for the high flyers most opportune for this strategy, which I like. If the trend is identified correctly, then it would seem the risks are reduced for the size of the rewards, and that is market efficient. I hope Mr. Babb and others include commentary on such strategy in their remarks about stocks in this forum. Best regards, m

To: Dale Baker who wrote (10079)	6/16/1998 4:25:00 PM
From: Prophet	Respond to of 18691

<< boxing >> Too bad my investment software thinks I am covering my short position. Boxing also does two great things: 1) It protects against speculative news, until it is released, after you have being caught with a short position. 2) Helps protect for overnight trading. 3) Great strategy for stocks that have short term upward momentum and that have a trend to oscillate during the day. Normally opens higher and then goes down. box it at end of day. Sell long in the morning then manage your short position. 4) Great vehicle to protect against FED margin calls for day traders. If short on margins (with no funds or securities in account) and the trade turns sour in the afternoon, then by in long for a day or two until the dust has settle and you can bypass the FED's day trade rule on margin.