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    Value Investing What is your favorite type of short thesis?

    Value Investing What is your favorite type of short thesis?


    What is your favorite type of short thesis?

    Posted: 06 Dec 2018 08:35 AM PST

    IMHO I've been using accounting-related indicators of earnings management or fraud when I select companies to short.

    But I've also selected shorts based on "Melting Ice" theses in the past such as Coinstar or the mattress industry (doesn't always work due to buyout risk). I'm sure we've already heard the saying "never short on valuation", which I've learned first hand to follow.

    Any other favorite reasons to short (no technical analysis)? How has those strategies worked for you overall?

    submitted by /u/bonkulus
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