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


To: Banjoman who wrote (116)9/2/1998 11:36:00 PM
From: George Dawson  Read Replies (1) | Respond to of 172
 
John G, et al,

I would appreciate any theories on shorting a stock in the $1.00 - 1.25 range with a float of 12M shares and a current short postion of 1M shares. The short position has increased lately, despite the fact that UPC-71 was in effect. My understanding of this rule is that there were no other shares available for shorting. There was also a theory that some preferred shareholders might be shorting. All of these theories are foreign to me.

My basic question is whether anybody has a theory of why the short position is increasing - aside from the obvious one, that the share price will go to zero.

More info at:

Message 5659320

All responses appreciated.

George D.



To: Banjoman who wrote (116)9/3/1998 2:57:00 PM
From: Vol  Respond to of 172
 
<< Also: it is quite clear that these mechanical short strategies don't lose as much as the high flyers in these sharp market drops. >>

Ahh, so all i need to do is to short AOL, AMZN, DELL, YHOO and then go on vacation. I'll return to find the margin man boarding up my house and towing away my car. <ggggggggg>

Your findings are somewhat discouraging. Guess there is not automatic way to make money in this market (except to invest in the anti-Bald Man portfolio) gggggggg

vol