Selling CEZ short

ČEZ's shares are at a record Kč 815 and, according to analysts, could rise another Kč 100. At some point, there's going to be a correction - perhaps of as much as 30-40%. ČEZ's managers and their favorite stockbrokers have been pushing the price up, and those in the know - as well as plenty of hangers-on - have been raking in the cash. At some point, though, the name of the game will be short selling (betting on a fall in the price), because the upside will be fully exhausted, and those in the know won't want to give up their cash cow. CEO Martin Roman of ČEZ said in HN today that he's not currently considering exercising his stock options, because he believes in ČEZ. By the time the public finds out that he has decided to sell, it might be too late. Investors can probably make a safe bet, though, that he'll do all he can to keep the good times rolling until the June elections. [Czech Republic shorting Hospodářské noviny electricity energy]