During MacArthur’s early career, it was a momentum players’ market. Stocks, particularly Internet stocks, went up and up, regardless of earnings. The carnage in the short community was immense and many short only or short biased funds went under. We gained wisdom vicariously through our clients on how not to invest. Typically, we do not invest in a stock while the stock is at the 52-week high. There are a few exceptions; however, generally we wait until the company misses a quarter or two before we become interested in shorting the stock. We would rather short a stock that falls from $100 to $80 to $90 before we get interested. Trying to short a stock at $100 that goes up after a solid eps report is a problem. We had to learn that problem with CMG and MNST; but with APOL at $78 we were confident because we knew the story. We also stayed with RATE and TPX, but it paid off large.