What I don’t say about short selling

This blog post is an attempt to clarify some things about this blog that may not be obvious.

I’m not a fan of writing about individual short positions.  You may see less of it in the future.  In general, I am trying not to get into conflicts with the wrong people:

  • CEOs who sue short sellers.
  • Eccentric CEOs who rant about Sith Lords, stalk short sellers, threaten their children, etc.
  • Regulators
  • The scumbags behind egregious frauds.
  • Etc. etc.

I really don’t want to get sued (or worse).  Often when writing about a bad company, I will tone down the rhetoric.  I won’t say that a particular company is clearly a fraud even if it ticks off almost every red flag that a fraud can have (see my post on spotting frauds).

Secondly, there are some tricks that I don’t think I will talk about.  They relate to:

  • Easily finding good short positions.
  • Figuring out if insiders are disguising their trading and selling their shares illegally.

You’re going to have to figure out these things on your own.

Figuring out what I really think about a bad company

If I am pretty confident that insiders are secretly and illegally selling shares, I’m not going to say it.  If I am pretty confident that a particular company is a fraud, I’m probably not going to say it.

To get an idea of what I really think about a stock, ask yourself:

  • What are my biggest short positions?
  • How do I rank a particular short position versus others?

Steal my ideas

While I won’t tell you how you can easily find good short positions, I might occasionally post a table of my short positions.  Go ahead and do your own research on these names.

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