Re: [CANSLIM] CANSLIM for sourcing shorts

From: "J. Lobatto" <jlobatto@nyc.rr.com>
Subject: Re: [CANSLIM] CANSLIM for sourcing shorts
Date: Wed, 1 May 2002 17:20:46 -0400

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Sounds interesting. One thing I noticed is that there seems to be a short
interest of about ten days trading. This is pretty high, so obviously many
folks concur with your evaluation. However, if it does break out to a new
high and these short sellers decide to cover, it could be a nasty run to the
upside. I've also noticed in the past that high short interest often
coincides with volatile whipsaw moves. In any case... good luck.

Jon
- ----- Original Message -----
From: "Ian" <ianstm@shaw.ca>
To: <canslim@lists.xmission.com>
Sent: Wednesday, May 01, 2002 5:16 PM
Subject: [CANSLIM] CANSLIM for sourcing shorts


> Often, I keep a small list of 'CANSLIM' darlings as potential short
> candidates - usually things with average balance sheets and huge
valuations.
> One of those that has been on my list for a while is PFCB.
>
> In the last couple of weeks, PFCB has had 4 exceptional volume days
without
> any meaningful advance - even though each day was 'green'. IMHO, that is
the
> distribution that I have been looking for. I have a short here in the high
> $72's, that I will stop out if it goes through $74.50 from here.
>
> WIth a split upcoming, it is easily possible that I get stopped out - but
I
> am risking just 1 1/2 points, and my reward could be 20 points +.  PFCB
> trades at what I consider an extremely high valuation, given their cash
> generation, in a capital intensive business. If I had been long the stock,
I
> would have taken the recent advanceless volume days as sell signals.
>
>
> We'll see.
>
> Ian
>
>
>
>
>
>
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