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

To: Q. who wrote (2215)	4/18/1999 5:24:00 PM
From: Ocote	Read Replies (2) \| Respond to of 2506

IPO shorting update I don't have extensive backtesting ability but will share what I have found so far from observations. 1. Small cap IPOs have done poorly as a group recently. 2. IPO's that break below their initial price tend to continue down. 3. Let's just forget about internet issues for now. Therefore, I propose the following rules for an IPO screen: 1. Take all IPO's for the previous 3 months(not including this month). 2. Throw out all internet related stocks. 3. Apply filters: volume 20 k or more; market cap 20 - 200 MM; Price > 5. 4. Rank by worst to best performance from initial offering. For this screen, the following 5 stocks result. Ticker Close Mkt cap Performance since IPO SGAI $12.63 145.43 0.64 ICED $6.06 113.53 0.71 COCO $17.75 183.64 0.81 EVCI $12.69 53.40 0.84 INMG $9.56 121.24 0.87 I will track this portfolio and give an update in a month. Ocote BTW: I appreciate the backtesting going on with the mechanical screens and eagerly await ongoing results.