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

To: Q. who wrote (2304)	5/4/1999 9:03:00 PM
From: mortwald	Read Replies (2) \| Respond to of 2506

I used the following screen:(PROSEARCH 5) Price book >3 Price sales >2 - Weighted 100% Stock price > 5 30 day avg Volume > 50000 Relative performance 1 year weighted 100% Free cash flow < 0 Market cap 20-200 million price to 50 day MA > 90% Short interest ratio < 5 Screen was done monthly from 6/1/96 through 2/1/99. The top eight results were used. 195 positions were taken, held for 65 days. (Some stocks were omitted as the screen did not give a final price. I'm not sure why. I suspect their database is not fully complete.) There were 138 profitable trades and 57 losers with an average profit of 11.03% per short sale. There were 4 stocks which more than doubled ( 180, 130, 105 and 416% gains). If a stop at a 100% gain had been in place, then the return would have been 13.25% per trade. I think these results are remarkable for a short, 3 month holding period, with no massaging of the data except for a rather permissive stop of 100%. .....................................mort