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To: steve who wrote (155)	7/29/1998 9:37:00 PM
From: Druss	Respond to of 253

Steve--The something they like is normally something that means the stock is going down. It can be a huge number of things or combination of things. I could probably give you a two or three page list of valid reasons a short would take a position in a company and would likely miss some reasons. Here are some of the most common: Skewed fundamentals (the company is selling at too high of a price relative to its current market position or prospects), new or increasingly effective competition, share dilution occurring, poor management coming in or becoming apparent, the company is 'broken' (that is to say dying because of any number of factors), questionable loans, the company lying in press releases, law suits, insider dumping under some conditions, TA, release of questionable products, and on and on. If you are doing it yourself, take a company apart looking for negatives and reasons not to buy. If the reasons are compelling look to see if the company will probably take a healthy hit because of them. If so then you may have a short. One of the most damning things I have read about people buying into a company is they would do more research if they were buying a vacuum cleaner. That is not a sin that the shorts I know make. They research extensively and then offer it as a target to friends whose opinion they respect knowing that friend is going to do some heavy DD themselves. All the Best Druss