I would like to here peoples longer term short ideas? a couple i think might be great shorts are MCO THC could both be 0 in years to come
Before you try to short THC please read the following article: http://seekingalpha.com/article/190592-tenet-healthcare-tops-estimates-as-revenues-rise And regarding Moody's? MCO is already depressed by the news of potential lawsuits. There is little-to-no suprise news downside on this equity. Do you feel like the global economy is going to grind to a complete halt? That would be one of the only ways that I would want to even consider a short on this item. If anything, both of those stocks have good potential for long-term investments. Before you trade, make sure that you do full due dilegence.
One other thing about shorting. The article below might be of some interest. http://www.investopedia.com/ask/answers/05/shortmarginrequirements.asp And you have to consider the margin interest.
Good topic, but please post a little commentary with your picks. Barnes & Noble - I just don't see them being around in a few years for a number of reasons. 1) more people are shifting towards buying physical books online through Amazon. 2) The Kindle/iPad will help shift books sales online, which Barnes will miss out on 3) even if people continue to want to buy physical books in person Walmart/Target/Sears has been in a price war selling $10 books. That means there isn't much of a compelling reason for consumers to use Barnes and Noble. Sure, someone will bring up the Nook, but I dont see any way that it can compete with the Kindle and the iPad plus the slew of new tablet devices that will follow. Palm - I have been short this stock for a while. The smart phone market is just too competitive and Palm doesn't offer anything special enough. Even if a smartphone has a new feature, it is at most a couple months ahead of the competition. Elevation Partners could prop this company up though, so I don't see it at zero anytime soon. There are also the constant buy out rumors to deal with.
The fascination with short-selling is itself.............fascinating. Could be zero? Could be a lot of .............prices. Is shorting a 5 dollar stock worthwhile? Five bucks is the threshold for institutional "accepibility" Assuming THC (not to be confused with the active ingredient in female marijuana plants) goes to zero, why that's a whopping 100%. A one-bagger Chances of the stock being cancelled (zero) is what? THC's been around for 35+ years. Have YOU? I would suggest THC will eventually have it's day in the sun (again). It's not institutionally saturated and price to revenue a mere point two seven. Dirt cheap from a fundamental standpoint. Medical reform is in the limelight. And EVERY share is held by somebody. Given the attached chart, where/when THC should have been shorted?
Short things making a breakout + a few red bars. but purely shorting things for profit on a long term is not a good deal Being in the market automatically provides risk premia, you don'tw ant to be on the other side of it.
I don't see the benefit of a long-term short in stocks. Maybe you can make 100% over a long time period on a couple of stocks, but most don't go down that far. In a rising market it makes sense to be long, with a few hedges if you are really risk averse. A short will never triple in value. The short-trading strategies I've seen only work in downward trending markets. And they are TRADING strategies, not short-and- forget strategies. Most take profits in the 30-35% area and then look for another entry in a counter-trend rally. From a market timing standpoint, it is extremely unlikely to have a significant (over 30%) decline in the stock market within four years of a crash (ie. 2008 decline).