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To: Bill Harmond who wrote (44189)	3/6/1999 10:29:00 AM
From: Glenn D. Rudolph	Respond to of 164684

Commentary A popular excuse for promoters with a weak deal is to claim that the shorters are hitting their stock. Can't move the stock higher because of those damn shorters; shorting shouldn't be allowed. A popular rallying call for the promoter is to announce a short squeeze. We're going to run the stock higher so that all the short sellers have to cover, and that it will make it go even higher. What a country. The truth is, shorters don't make good stocks go down, and they don't cause stocks to head higher when they all move in to cover their positions. The stock market is extremely efficient. It moves up and down as the market receives and interprets information about the future earnings potential of the corporaton. What short sellers do is smooth out price moves. When stocks get overextended on psychological euphoria, smart investors, who realize the price discrepancy, short the stock, slowing the upside move. And when reality sets in and stock owners hit the panic button, all running for the exit door at once, the short sellers are the only ones around to buy the stock back and make the downside move smoother and less severe. To be a successful trader, you have to short stocks as well as buy. And don't complain about short sellers killing your stock when the upside move slows down. They are only keeping the market efficient. Enough Said.