This activity is in complete contrast to our normal mode of operation which is to find good quality companies that are under-priced and have bright prospects.
We have put in the hard yards researching over a period of many months to identify weak over-priced stocks in preparation for the time when a market down-turn does eventuate. The premise being that we want to continue to generate positive returns for our investors even if there is a market correction.
To this end, we have compiled a significant list of these companies from the ASX market that are short-selling candidates (we will make money if we have short sold and the price falls).
Our intended mode of operation with short selling is simply to profit from over priced stocks where the underlying business doesn’t fundamentally justify a relatively high share price. We will do so when both the fundamentals (price follows value) line up with the technical price action.
We will be short selling with respect, fundamental and technical knowledge, appropriate position sizing and stop loss levels.
This article is published by Dean Mico.
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