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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sandra who wrote (8251)	8/31/1998 8:40:00 PM
From: Ken W	Respond to of 29382

Sandra, Thank you for the comment. Learning "that" side of the market is not difficult at all. Just reverse everything that you normally would look for. Look for stocks with weak fundies instead of strong, poor Q. reports and or bad news. Failing to meet expectations is the best one. Co's with exposure to Asia, Russia etc. I would expect south America to be next to rear it's ugly head. As you well know it takes a bazillion shares bought to move a stock up and only a few to move it down. Everyone is scared right now and I do not care what they say on TV this down market is being driven down by the Mutuals just like they drove it up. A stock suddenly trading millions of shares instead of its normal 50k is not you and me with our 500 to 1000 shares. nuf soap box. Look for co's that are just breaking under their 52 week lows with an intraday lower, than the closing low. Hopefully, not too oversold, in the 40 to 50 range with upward momentum and a weaking RSI. As to your account: you must be approved for margin and have, generally 150% in cash and or stock of the price that you want to short, say 100 shares of a 10 dollar stock means that you must have a combination of 1500 dollars in your account. If that equity falls below 135% you will get a margin call to bring the equity back up to 150%. You pay no interest on the borrowed shares and the commission is the same as a long trade. How to lose money: If the stock moves against you then you will get a margin call. Most brokers give 24 hours to get cash in hand or they start to liquidate your holding to bring you back to 150%. If you do not cover at a loss then you could feasibly be caught in a loss for untold amount. You limit those losses by placing a buy stop, just like a sell stop at a higher price, so if the stock goes the wrong way on you, you are covered for a slight loss + commissions. This is just a short (no pun) on how to short and the risks. Given the present market even I could make money.:-) I know that you like PSIX alot, but take a good look at its chart, it's last breakout was at 11 or so and again at 14. IMO it will go to 7ish soon. Ken W

To: Sandra who wrote (8251)	9/1/1998 9:36:00 PM
From: Sergio H	Read Replies (1) \| Respond to of 29382

Sandra, Cary's article on APCO is featured at Bizfn: <Automobile Protection Corp. (APCO) Monday, August 31 Carry Crossman of the Three Amigos shares his thoughts on APCO. APCO has continued to beat earnings estimates and and revenues have increased every year since 1992 from $16.1 million to $93.9 million. Partnerships with companies including Allstate and Banc One should allow APCO to grow substantially over the next five years. > bizfn.com Did you see IFCI take off today ? Their IR did a great job in getting press releases out at just the right time. Take a look at ZOOM, THNK and GMGC for short term and long term trades. Sergio