Shorting FARO Tech

[Phaedrus]

Short-sold 400 shares of FARO Technologies (NASDAQ:FARO) at $ 8.50 per, on an uptick to $ 9.05

Was difficult to obtain shares for this due to scarcity, but if your broker can find someone with the stock they will have no problem getting it into inventory, as it's up more than 20% since the close of trading yesterday.


Phaedrus

 

[Phaedrus]

Thank God for low-volume Fridays. Didn't have to cover this short yet.

Why won't this piece of dogshit stock go down fer Chrissakes? No news, no insider trading, no market optimism, hardly anybody's ever heard of the damned company. No reason for it to have shot up like it did, and sure ashell no reason for it to be hanging in there.

Hoping like a m.f. this sub dives on Monday, because I have a feeling it's going to be a busy trading day and there is no chance I'll get a fifth chance on it.

Phaedrus

 

[Phaedrus]

Well, that was extremely painful. As predicted, today is a busy trading day for FARO -- it's already done almost double it's average daily volume with more than two hours to go in the day -- and I had to cover at $ 8.83 per.

Now the piece of shit will probably tank to $ 7.00 a share tomorrow, now that I'm out of the money. I fault my own greed on this trade, as if I had set my mark to $ 8.75 I could have instead of $ 8.50 I would have made almost 3% over four trading sessions, or roughly a 180% annualised return -- not bad work when you can get it.

Live and learn.

Phaedrus

 

[yellowman]

No offense Phadreus...but I swing trade quite a bit. I see on July 14 Faro sends out a press release stating a 57% increase in sales for Q2 2003. I know they shot up and you were hoping to cash in on the retraction, but honestly, of all the stocks out there...this kind of seems like a real bad one to short. Far too many other morsels out there....didn't seem like a big loss tho...keep posting your trades. Right now I'm in INSM. Traders dream...bought at 2.75, out at 3.54 four days later....drops to 2.7...bought at 2.71 today....will ride her up to 3.25 at least. Good luck.

 

[Phaedrus]

Thanks for the feedback YM ... it wasn't just a Pavlovian thing; take a look at Faro's sales record ... a 57% increase is great but they're talking about 57% of shit ... so shit times 1.57, which is really not much to get excited over. Considering that that was the only single positive factor on a stock that has a lot going against it, I'm really suprised that it hasn't given up ground yet ... not just because I lost money on it, but because there's simply nothing holding that $ 9.00 mark up for this stock. At today's close of $ 9.50 it's trading at a p/e of almost 900, p/s of more than 2, and p/b over 3. It's a piece of garbage any way you look at it -- no idea why it's got such support.

Shorts aren't really my forte' anyway, but I felt like posting it up -- serves me well to have my first swing trade posted bite me in the ass to the tone of more than $ 3,500.00


Phaedrus