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Before Rolling Over
& Falling Off a Cliff



We recommended shortselling Fluor (FLR) on August 11, 1997 at 59-stop. On August 14 the sell-stop was activated and FLR quickly fell to 55. It then rallied to 59.125 before rolling over & "falling off a cliff." That means the most "heat" you took in the trade was 1/8th of a point or a microscopic 12 ½ cents.

Our 1st target of 51.50, again given at the time of the recommendation, was reached on October 23 (13% in just over 2 months—66% annualized).
On November 30, we said "cover 2nd ½." It was obvious that the "easy" money had been made & at a minimum FLR was due for a "bounce," even if the downtrend resumed at some later date. We bought back the 2nd ½ of our shares at 36 (39% gain in 112 days—127% annualized)—a mere $1.06 from the absolute low.

As it turned out, FLR had more than just a "bounce." By not being g-r-e-e-d-y, we were able to capture essentially the entire meltdown and move onto the next opportunity—rather than riding FLR back up again, and watching our profits disappear.

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