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Technology Stocks : General Magic -- Ignore unavailable to you. Want to Upgrade?

To: VIPER85730 who wrote (5468)	3/8/1999 9:06:00 PM
From: LastShadow	Read Replies (1) \| Respond to of 10081

Shorts if i might offer a little logic and insight to shorting. There are basically two kinds, Positional and Conditional. A positional short is where one takes a 'position' at a given price and rides that down just as one would a climb in a stock's price. the Difference is that a short position is generally liquidated once the stocks hits its local minimum. The reason is simple - there is no point in shorting from $12 down to $$4 and maintinaing that position once it bounces off that floor. In fact, there is considerable risk of a short squeeze. GMGC dropped off the most shorted list last month, meaning that for the most part a large porition of the shorts have covered. A conditional short is a short term trade in which one jumps on a failing price movement and rides it down for the day or two's profit and then exits to play others. Much as a daytrader takes long positions for. In either case, one does not short and hold a short position for the simple reason that while a horizontally trending stock may still go up more, it can't go any lower than zero. Also, most people that short are not doing it with the idea that a severly depressed stock will go down more than 75% as in GMGC's case, but because it is a profitable short term play. Once played, that money needs to be effectively reemployed. languishing in a short position that isn't moving doesn't do anything but increase risk. Playing multiple swing postions - long, then short between 4.50 and 7.00 is the more likely reason to pressure GMGC, but looking at the chart, those cycles are for the most part too far apart to be played other than occasional traders or intraday scalpers. And it one looks around, there are quite a few better (greater spread in fewer days on more volume and number of trades) one would play than GMGC. People are neither breaking down the doors to short this stock anymore than they are to buy it. That alone implies the need for better PR. Any PR. lastshadow