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

To: peter michaelson who wrote (15017)	11/4/1998 3:09:00 PM
From: trouthead	Read Replies (1) \| Respond to of 18691

A question about shorting stocks. When I short a stock and it rises when do I have to cover? I ask because if I buy long, I can hold that stock until it hits zero. But as the short sale rises I am incurring greater and greater losses. When will the broker I borrowed the shares from come and demand a pound of flesh? Thanks, jb ps sorry for the on topic post.<g>

To: peter michaelson who wrote (15017)	11/4/1998 4:27:00 PM
From: Roger A. Babb	Read Replies (4) \| Respond to of 18691

Peter, I was short NTBK from 30+ down to about $20. I started to go long around $15 but did not, to my regret now. I think it is fully priced at $25 and should be shorted above $30, but then I think yhoo is overvalued too and it seems headed for the moon. I keep saying forget revenue, forget earnings, just count the hits! But my gut keeps saying short, short, short..... YHOO Market Cap $14,000 million Sales 150 million Employees 386 Cash 143 million price/sales 94 (5 times higher than MSFT) price/cash 98 (5 times higher than MSFT) price/employee $36 million (4 times higher than MSFT) YHOO is not as fundamentally sound as MSFT and has little hope of growing (dollars, not hits) as fast as MSFT so there is no rational for carrying ratios of 5 times MSFT. The YHOO bubble will eventually burst. In the end we will count dollars, not page views.