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Biotech / Medical : VD's Model Portfolio & Discussion Thread -- Ignore unavailable to you. Want to Upgrade?

To: Russian Bear who wrote (5159)	6/18/1998 11:49:00 PM
From: Rocketman	Respond to of 9719

OK guys, I don't agree here, but will be seeking further opinions. However, spoke to my father-in-law Papa John Bear about it just now. He is pretty well informed in this regard, he constantly shorts many stocks and was formerly Exec VP of the New York Stock Exchange, suffice it to say that he knows what he is talking about. First, he said that the rules will depend on the brokerage, and of course the Fantasy Brokerage has wonderfully lenient rules. Secondly, he agrees that in most cases you do not accrue interest on the credit from the short. However, he did not agree with Andreas that you need both the buying power and to hold the cash you received from selling the short. If the stock you shorted goes up, some of your buying power is marked to market and consumed into the short credit account, however, if the stock goes down, some of the credit is then applied back against your margin causing the margin balance to drop, which makes your buying power go up. I would however like for V1 to get an opinion on this one also. I will call my broker tomorrow for another opinion. For now I hold my ground. I do agree with you RB that shorting ENMD is a no brainer. Rman