Short Selling Opportunities

At Edge7, while share prices have been going up, we have been working hard to identify stocks that are fundamentally weak, over-priced and have dim prospects.

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.


The information provided in this article is intended for general use only. The article is intended to provide educational information only. Please be aware that investing involves the risk of capital loss. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein.

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