by winston » Mon Aug 01, 2016 8:13 pm
Candidates for Short-Selling
by Dan Ferris
When we sell a stock short, we flip our criteria for buying a stock upside down.
But when we go to short, we choose companies that have a competitive position that's getting worse and worse, and is in fact beyond the point of no return, but that we feel the market hasn't really punished enough yet.
You can find a company that is down 50% or 60% and it can still be a good short. Usually, stocks that trade at 52-week lows don't perform well going forward.
Scott Fearon – the author of the book Dead Companies Walking – likes to short only when a stock is down 50% or more.
Source: Growth Stock Wire
It's all about "how much you made when you were right" & "how little you lost when you were wrong"