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


To: RockyBalboa who wrote (586)11/28/1998 11:14:00 AM
From: bob s  Read Replies (1) | Respond to of 709
 
Christian-I like your logic focusing on the 2nd or 3rd tier internets. Which are your best candidates for shorts where one can actually get some shares? Thanks Bob



To: RockyBalboa who wrote (586)11/28/1998 12:32:00 PM
From: put2rich  Respond to of 709
 
Christian,
Thanks for your long and great analysis. I don't have time to watch market and low on buying power. But will short small and put a target real high to short second and third tier internuts. You are right that I think the frenzy will stop and when all nuts go down 10% it will accelerate the drop...
Regards,



To: RockyBalboa who wrote (586)11/30/1998 9:26:00 AM
From: Q.  Read Replies (1) | Respond to of 709
 
re. BFLY, and the warrant call play:

Christian, after Friday's big move up in response to that one-sided story in Red Herring, I agree with you that a short position in this stock deserves to be hedged with a long position in the warrants. Especially since they are priced with no time value. I belatedly bought warrants Friday. If I had done this from the outset, I could have synthesized a position that had zero risk: nothing happens if the stock goes up or stays flat, but a profit if the stock falls below the warrant exercise price.

It's looking more like a sure thing that they will get to call the warrants. I wonder how long it will be before we see a prospectus filed to register the shares. They can't call the warrants unless the shares of common are registered. (They aren't already registered, are they?)