The Web Site of Victor Niederhoffer & Laurel Kenner
Dedicated to the scientific method, free markets, deflating ballyhoo, creating value, and laughter; a forum for us to use our meager abilities to make the world of specinvestments a better place.
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Don't KITCHEN Your Opponent's St. Pete, by Charles Pennington
Following on with lessons (as requested by the Chair) from Mr. Omero C. Catan's "Secrets of Shuffleboard Strategy"... we are advised:
"NEVER, NEVER try to send your opponent's St. Pete to the KITCHEN. Do not be a HEADHUNTER. Headhunting may be excused only when there is a FREE RIDE to be had, or in rare cases with your opponent's TAMPA PILOT." (page 40)
What should you do when one of those nasty Nasdaq stocks leaves you behind with a big gain? Should you sell it short, trying to send it to the KITCHEN? I think not.
Using the Nasdaq 100 ticker list as of December 1999, we look at a strategy of selling short each month's top Nasdaq performer (assuming its monthly return is greater than 10%, and restricting consideration to share prices above $10). We hold the position for 21 trading days.
Results? Average return is +0.04%. Essentially nothing. There were 60 trades; 28 winners and 32 losers. The average winner made 15.1% and the average loser lost 13.1%. But oh what pain you suffered when you shorted NTLI in May of '03 for a 64% loss.
"There are more psychodrama aspects to this sport than meets (sic) the eye. In truth shuffleboard is a deep-rooted course in human behavior."
The Shuffler's Prayer, by Charles "The Slide" Pennington
O God, Grand Architect of the Universe, we thank You for the miracle
of 1924 when You bestowed upon us the all-encompassing physical,
strategical, and competitive sport of MODERN-DAY shuffleboard. We
thank You for giving us the wisdom which enabled us to improve this
sport thru the past three decades to the fine degree that it finds
itself in today.
Composed by Omero C. Catan, 1962
Mr. Catan is author of Secrets of Shuffleboard Strategy
Excerpt: "NEVER, NEVER try to send your opponent's St. Pete to the KITCHEN. Do not be a HEADHUNTER. Headhunting may be excused only when there is a FREE RIDE to be had, or in the rare cases with your opponent's TAMPA PILOT."