Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Roger A. Babb who wrote (13965)	9/23/1998 12:31:00 AM
From: Jose Matos	Respond to of 18691

Personally, I'm gradually loading up on several internet stocks to short. The fact that the market and many talking heads on CNBC have blinders on and are completely ignoring or misrepresenting the seriousness of the world's economic conditions is sad, yet it does allow for good profits going short. Lets face it, Japan is in deeper crap than they'll ever admit and are culturally unable to do what needs to be done. Russia has an alcoholic for a president and believes that as long as you can print money, things will work out. Large US banks are simply PRAYING that Brazil and South America doesn't devalue or collapse, since they've been funding these countries for years and won't know which way is up if they begin to default on their loans. Amazingly enough however, Yahoo just made a new high today hitting about 107. Earthlink is close to its high at 41, MSPG at 37 also close, AOL, and a few others. These have already shown what they can do when the markets get hit (ELNK down to 23,YHOO down to about 70...). My short picks now are Yahoo, ELNK, CMGI, LCOS, MSPG, XCIT, SPLN, AOL.. almost in that order. This market can only swim against the current for so long, before if succumbs to reality. The DOW 30 are large multinationals which depend on the world to be stable and growing. A rate cut (although I doubt it will come next week) would still only be a short term help, and may even be priced in already. The bottom line is that the market will see 6800 by the end of October (Just my opinion and prediction) and when the declines begin, the above mentioned internets which have rallied in the last 2 weeks will once again test and break, the lows set of September 1. Food for thought. Not a recommendation for anyone to follow. Regards. Jose Matos

To: Roger A. Babb who wrote (13965)	9/23/1998 2:57:00 AM
From: arar	Respond to of 18691

I have question about shorting - would appreciate input from knowledgable shorts. Assuming i short a stock and sell naked puts against it at a lower strike than the shorted value (kind of opposite of covered calls)- would this strategy be better than plain shorting? of course, if the stock tanks my gains are limited to the put strike price. But if the stock goes up i keep the put i sold. Above all, if it is a stubborn stock taking time to fall - i stillgain. My main doubt is , can my broker recall my short position without informing me and then the short tanks, leaving my puts in the red. Any one sees other problems with this strategy? thanks, arar