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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: Nevada who wrote (593)	10/31/1998 1:40:00 PM
From: JEB	Read Replies (1) \| Respond to of 19428

I've noticed that everyone has seemed to have missed the news on BT (Bankers Trust): go2net.newsalert.com FYI - The head of the World Bank (James Wolfensohn, i.e. "Wolfman") owns around 200,000 shares still. (IMO - conflict of interest) JEB

To: Nevada who wrote (593)	10/31/1998 3:49:00 PM
From: Sir Auric Goldfinger	Respond to of 19428

Liquidity and breadth are the things I watch. When they are acting as they are now, you want to be in mainly very short-term event driven shorts only. Frauds are always great shorts, the issue is timing. People want to believe, so they listen to boiler room touts. As longs as things are going their way, they let the bets ride. From very painful give-ups in the past, I have learned that people's memories are about as short as that of a fly. Not three weeks ago, people were in an absolute panic and were swearing off small cap stocks and tossing them out the window. That they forget about a near miss with financial death is not something you should try to fight. While I agree that valuations are out of control and have been for the last 3 years, the influx of money into index and growth funds is a very tough tsunami to fight. Our strategy is to stay long smaller caps that have plenty of cash on hand and that actually generate cash from operations (look beyond hyped income statements) and which sell at a discount to their growth rates (i.e. forward p/e less than 5-year consensus annualized growth in earnings). These stocks get far less punished in downturns, but also move slower than overpriced MO stocks. Now is not the time to swing for the fences with aggressive valuations on the long side. The time to get more aggressive on the short side in general will be when the New York and Nasdaq cumulative advance/decline lines stop moving up at such a relentless pace (2nd order derivative goes negative). Nadsaq a/d is going vertical right now. New York not as vertical, but still trend is up. The current case for putting on more shorts are those subject to tax loss selling. These stocks are typically down 30% or more year to date. This kind of selling will be kicking in shortly, but is to yet evident in my opinion. Hope this helps.