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Technology Stocks : Source Media SRCM -- Ignore unavailable to you. Want to Upgrade?

To: Cube who wrote (1071)	8/27/1998 2:06:00 PM
From: Mike Maxton	Read Replies (2) \| Respond to of 3015

Shorting is almost always this much fun! ;) Boxing is a method to protect your short gains if you are unsure of the direction of the stock for a short time. It just means buying an equal amount of shares as those you have shorted (not buying to cover, but buying shares to put you in a neutral position). This allows you to keep your short shares so you don't have to worry whether the stock will be available to borrow later. Once you feel comfortable that the stock is heading bacdk down, sell your long shares and you take advantage of the downward movement. mike maxton

To: Cube who wrote (1071)	8/27/1998 2:41:00 PM
From: Smilodon	Read Replies (2) \| Respond to of 3015

No, shorting is NOT always this fun. Shorting is much harder than investing long as you are fighting the normal long-term direction of the market. Check post # 76 that I made on the short case for SRCM. I did extensive research on this company and most of my projections have worked out in a short amount of time. BUT, one day I watched this stock double to $39 per share. I saw a Dow Jones report saying a deal had been struck at $45 per share to sell the company. With all I knew about the company, a buyout made no sense, but strange things happen. So, I was faced with losing more than all my initial investment. I covered most of my positions that day or hedged with warrants for HUGE losses. Two days later I was aggressively putting the shorts back out. I finally broke even when SRCM got to around $10. Any investment where you can lose more than all your money is never easy. And, there is always a potential short squeeze or a run-up based on hype and manipulation waiting for you. Shorting has recently seemed easy due to market conditions. If you think it is normally easy, you are in for some serious pain in the future. An amateur short-seller is like an amateur electrician. They tend to be crispy and dangle from the ceiling. Best of Luck, Archer