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Strategies & Market Trends : Value Investing

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research1234
Spekulatius
To: Paul Senior who wrote (59323)4/4/2017 8:22:43 AM
From: MCsweet2 Recommendations  Read Replies (2) of 78915
 
BIG has huge short interest. 29.52% of float according to Yahoo

The stock had looked good to me awhile back, but I am going to work under the assumption that these shorts know something that you and I don't know Paul.

Unless you can explain to me why those investors are going through the cost and effort of shorting the stock, and we are convinced they are wrong in their assumptions, I would not be buying the stock.

Note also that historically stocks with high short interest underperform the market.

Good luck,
MC

PS: Despite ALLY being down since we last talked (and cheap valuation), I still think it is an avoid due to the risk in its car lending business.
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