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He adds, not talking about any company in particular: "The good things for shorts is that managements lie and they lie like rugs. The question is, how do you do your research and find stuff before it finds you? That's the trick. The difficult part of the business we are in is finding these names and not getting squeezed before these names blow up. "And people are real fast to make fun of guys (who are short) and accusing them of doing things and making a bunch of innuendos. But now it's put up or shut up time for many of these companies. It seems to me there's a new sheriff in town, and that new sheriff is the SEC and they don't seem to be in the mood to put up with this accounting nonsense anymore." Meanwhile, back at Engineering Animation: While the company says it isn't changing guidance for the next three quarters, Cohodes believes the company will miss the second quarter "because usually when you move the refrigerator and find a cockroach, in the tech business
you find another one and another one." Engineering Animation says it never tried to predict its quarter a few days before it ended; they say the March 26 Dow Jones story expressing comfort about the quarter was based on a March 11 interview. A spokesman adds the company is deeply embarrassed about its quarter, which he blames on poor execution -- a problem it intends to fix. "We're going to have to regain our credibility," he says. Short Positions

Blame it on Asia: No, make that Y2K, the latest scapegoat for companies to use as a smokescreen for a host of problems. In the case of Engineering Animation, at least the company didn't take the yellow-bellied way out and blame its problems on Y2K issues.
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