Monday, May 12, 2014

The Art of Short Selling - Bubble Stocks

A perfect short sell candidate is a stock with a large float to allow ease of borrowing and no buy-ins (forced buyback), a high stock price for maximum return, and no business or assets to keep the risk nominal and the investment horizon short term. A perfect short can cause terrible losses.

The single most important section in a prospectus is the risk factor section called "Investment Considerations." The company always tells you why it will fail.

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