2007-04-29 14:10:57 · 9 answers · asked by crsporty 2 in Business & Finance ➔ Investing
I'm assuming you know that shorting comes from selling shares of companies with the intention of buying them back once the stock declines - hence, you should be looking for things that are overpriced. As a general rule of thumb, it is a better idea to sell strength (i.e. stocks that have recently run-up) than to try to pile on to something that is already near its lows.
I believe one person mentioned shorting things with no expectations; I completely disagree. You want to short things that have exceptionally high expectations, because they are more likely to disappoint. You can figure out implied expectations by doing a reverse discounted cash flow valuation, where you work backward to see what sort of growth is being priced into the stock. One stock that I see as having no chance of meeting these implied expectations is Heely's (HLYS) - you can read my thoughts about the stock and why it appears to be a great short play at both http://www.valuestockreports.com/hlysbrief.htm or http://retail.seekingalpha.com/article/31877
Best of luck.
2007-04-29 16:22:20 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Anyone asking this question should not "short" stocks. Looking for advice from strangers, with no way of knowing their qualifications or motives is a sure indication that you should not be in the market.
Not trying to be nasty. But you need to be a little more realistic about how you pick your stocks (long or short).
2007-04-29 16:44:49 · answer #2 · answered by Common Sense 7 · 0⤊ 0⤋
Look for bad valuations, negative returns for the past 10 years. Especially if they hit a 52 week high. Without no real expecations. Just bull market syndrome. Companies that you believe are going to go bankrupt.
You can calculate, how long it will be before they go bankrupt.
2007-04-29 15:11:30 · answer #3 · answered by Nathan 2 · 0⤊ 0⤋
U can take free Trading tips for Indian Stocks market like NSE from Site like http://IndianStocksNSE.blogspot.com
2007-04-30 01:17:55 · answer #4 · answered by ak_pathik 3 · 0⤊ 0⤋
the version in the two expenses is your loss. basically subtract. With short merchandising, you have post basically a million/2 the dollar volume and borrowed the rest out of your broking service.. as a result you will additionally be paying activity on your broking service on the borrowed volume.
2016-12-10 15:00:07 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Blockbuster (Who needs DVDs when you can download your films directly from your Microsoft XBox 360 and in HIGH DEFINITION?)
Warner Music Group (Who needs CDs when you can download songs directly from your Microsoft Zune for FREE if you let them download a few songs and Ads that you will hear only if you press the SHUFFLE button?)
2007-04-30 14:15:18 · answer #6 · answered by Anonymous · 0⤊ 1⤋
Ones you expect to fall....like the QQQQ's is a great long term short
2007-04-29 14:16:13 · answer #7 · answered by fade_this_rally 7 · 0⤊ 1⤋
One should make sure one knows what s/he is doing. This 'game' can wipe you out.
2007-04-29 14:31:02 · answer #8 · answered by smiling_freds_biz_info 6 · 0⤊ 0⤋
You would do much better buying options puts.
2007-04-29 16:13:06 · answer #9 · answered by Dean * 4 · 0⤊ 0⤋