SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Shorts waiting to happen

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Cadaver who wrote ()6/28/1996 3:07:00 PM
From: Ogen Perry   of 852
 
What about some fundamental shorts?

Most of the stocks that people mention in this forum are short term plays based on technical analysis. My only experiences with Shorts so far have been fundamentally overvalued stocks that I am willing to hold short for some time if needed. Specifically, I have shorted YHOO and AERN. As it happens, I already have decent profits in both.

What I am looking for are "spectular collapses waiting to happen". Elsewhere, somebody introduced the concept of a 100-bagger, a stock with the potential to increase in value 100-fold. Since we are talking about shorts, a ratio of 100:1 is not really that much better than one of 10:1, or for that matter 5:1 (after a shorted stock has lost 80% of its value, there probably is not much sense in hanging around for the kill)

So the challenge is: find overhyped stocks that are trading at greater than 5 times what we think they are really worth. In its first trading days, Yahoo was around 33 and probably is not really worth more than about 5 at the most. Can anybody think of other examples?

Ogen
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext