If you were creating a screener of stocks to short, what would be on it?
Conor Mac's avatar
I’d probably try filter for, excessive valuation ad a starting point, then from that base filter down into companies that are not growing turnover or earnings in line with what you’d expect from a valuation of that sort, maybe also have a second screener which scans for poor quality balance sheets too
Fat Baby Funds's avatar
@investmenttalk Yeah, I was playing around with excessive valuation and poor balance sheet, but you don't get a lot in this market with those.

Gotta love this new koyfin screener function though!
Steve Matt's avatar
Not to be flippant but I just wouldn’t. I know the market can remain irrational longer than I can remain solvent. I just don’t see myself ever shorting anything.
Fat Baby Funds's avatar
@interrobangbros Yeah, it would be puts not shorts.
David McDonough's avatar
would've had $ADBE until this morning. Just had a horrendous $ABNB experience so now I'm tempted by then too. But I think shorting is just crazy risky these days - beyond normal risk - because I'm scared whatever I short will get meme'd
Fat Baby Funds's avatar
@mcd Yeah, if anything I'd buy puts with a few months of time on them.

$ABNB has one I've thought about, but I struggle to see the real catalyst that will bring down the multiple. Stock has been resilient compared to everything else.
Rihard Jarc's avatar
insider selling (bigger than their "normal" long-term plans) would be an important part of it.
Joshua Simka's avatar
I don't really use screens so not sure how screen-able these things are but here are a few that come to mind straight away:

--no inside ownership and/or a high rate of selling by insiders
--rapidly increasing share count
--customer concentration (a major portion of revenue coming from just one customer)
--declining or very lumpy revenues with no good explanation for them
--rising expenses
--rising debt, especially coupled with declining assets