European Shorting
| New Threads Only: |  |  |  |
|
|---|---|---|---|---|
| New Threads & Replies: | | | |
|
Forum List » Value Ideas and Strategies Share and discuss value investing ideas and investing strategies.  
Short Position: AKS
Posted by: DaveinHackensack
(IP Logged)
Date: May 8, 2010 06:58AM
This was originally posted elsewhere on May 4th: I mentioned this on the message boards earlier: I shorted AK Steel (NYSE: AKS) at $16.02 today. It has an Altman Z-Score in the distress zone, it faces headwinds with higher input (coal and iron ore) costs, and it looks technically weak as well. A Short Screen member referred me recently to William O’Neil’s book on short selling. I perused the book in Barnes & Noble a couple of days ago, and this looks like the sort of chart O’Neil likes to short, with the stock trying and failing a few times to stay above its 50 day moving average. He probably would have shorted this at $22 though. Unfortunately, this stock wasn’t on my watch list then. Hopefully, I’ll still be able to make money here. If not, I’ve got a buy stop limit order in [I later changed this to a trailing stop limit buy order]. One tip O’Neil offered in his book was to use fairly tight stops when shorting, so you can be wrong (or early) more often than you are right and still make money (e.g. if you aim for 20%-30% gains on shorts and limit losses to single digits). My signature: I blog at [steamcatapult.com]
Re: Short Position: AKS
Posted by: DaveinHackensack
(IP Logged)
Date: May 25, 2010 12:22PM
Sorry, only registered users may post in this forum.
Please Login if you have an account or Create a Free Account if you don't |
Feedback
My Portfolios
Browse Gurus
RSS