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Pastimes : Organized Shorts - Could be watching your stock. -- Ignore unavailable to you. Want to Upgrade?

To: Tim Luke who wrote (132)	12/5/1998 5:42:00 PM
From: RockyBalboa	Respond to of 271

A crime? No, the ways it goes... Look, basically all companies short stock. They even do not need to watch margin requirements in the form of putting aside monies for a cover. And if they are astute enough, they act like professional short sellers. They give earnings warnings or see the stock plummet in a overall poor market. What to do: announce a buy-back and really buy back some shares as soon as news are forgotten. Some of them are even more savvy: In good times then, the stock is either talked up or goes up after a breaking news release, it can't go fast enough to register fresh shares. In other words: if the price is up too much, short more. And when it is down months or years after, why not quickly buy back stock and retire it. Note that this is REVERSE logic. If companies do it, the market participants also should be able to do it. C.