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Author: TMFBreakerRob Big gold star, 5000 posts Old School Fool Home Fool Supernova Phoenix 1
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Subject: Re: Shorting biotechs Date: 12/8/2007 8:10 AM
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"I assume that for reduced risk you get reduced returns, but that may be ok." -- franksmartin

Actually, depending on how you do it, your returns can be significantly increased . I would only suggest that you read up on it....you could end up with a major new tool in your investing.

http://www.fool.com/investing/options/2007/04/24/a-foolish-introduction-to-options.aspx?source=ifltnvsnv0000001

That being said, I would agree that biotechs are a great place to make money on the short side (although I would prefer options both for the risk management and leverage). I've been long on biotechs quite a bit over the last few years and, well, I doubt I'll do so in the future except as an options play on the short side.....I've just been hit too hard on it.

Ask anybody around here that was involved with DNDN this spring. I lost 20% of my portfolio overnight on that one. I'm just fortunate that was offset by a bunch of great *non-bio* picks....so I'm up quite a bit this year.

Good luck....

Rob
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