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Strategies & Market Trends : Shorting stocks: Mechanical aspects -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (63)	7/28/1998 1:24:00 PM
From: Banjoman	Read Replies (3) \| Respond to of 172

>>By picking only the stocks that had zero yield and NMF p/e, we found that we got only the the VL stocks with the shakiest cash situations. This was easy, because it required only looking at a single page of a VL booklet.<< I'll take a look at this. Doesn't pick many stocks though (in fact, only 4 above $5/share in this issue - Apria, National Semi, PRIA, and Western Digital). Looking at old VL's - on 4/17 it picked 4 stocks, 2 of which are down 50% or more (Acme Metals and OXHP), and the other two are also down. Scanning some other, seems to be a good way to catch broken stocks - Bosten Chicken would have been sold short (at 7 on 3/6). Also picks up tech stocks. Some weeks there are no stocks - never more than 4 in the last 6 months. On current list, Apria is the only broken stock candidate, I think. Don

To: Q. who wrote (63)	9/6/1998 11:43:00 AM
From: Vol	Read Replies (1) \| Respond to of 172

John G, Re: mechanical shorting Ultimately, he and I figured out a very easy way to narrow down the VL #5 list. On the page of the VL booklet where they list the #5 timeliness stocks, they also listed the dividend yield and p/e. By picking only the stocks that had zero yield and NMF p/e, we found that we got only the the VL stocks with the shakiest cash situations. This was easy, because it required only looking at a single page of a VL booklet. That guy made a paper portfolio, and followed it for several months (much as you did) and he got quite a good return, something like 10% per month, on the shorts. It should be easy to backtest this scheme if one had the old VL reports. 10% a month!! compounded that is 1.1**12 or 213% per year!!! is that for real?? why the heck arent' you and he still doing it. you could retire to the Caymans in just a few years. sounds too good to be true, but i'll look into it. btw, what is "NMF" p/e? i assume it means negative 12 mo trailing earnings. vol