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I try to be prepared for market moves. If it goes down, I want to have a few stocks that I might like to short. Two stocks I have identified recently are MBIA (NYSE:MBI) and Central European Media Enterprises (NASDAQ:CETV). Both of these stocks have had significant revenue losses recently. Both carry significant debt loads. Neither stock is highly rated by analysts. They both should make good shorts, if there is a downturn. MBI would be a great short in a credit crunch. Some of the relevant data for each is below: 

Stock

MBI

CETV

Current Price

$5.14

$28.50

1 year Target Price

$4.33

N/A

PE

--

--

FPE

--

--

Analysts Average Rating

3.3

N/A on Yahoo

Short Interest %

14.95

6.62%

Price/Book

0.38

1.42

Price/Cash Flow

--

--

Total Debt/Total Capital

80.87%

57.58%

Quick Ratio (MRQ)

--

2.34

Interest Coverage (MRQ)

--

--

Return on Equity

-11.05%

-24.35%

Revenue per Employee

$1,696,807

$183, 403

EPS Growth (MRQ)

-2.16%

18.74%

EPS Growth (TTM)

95.80%

-343.15%

Revenue Growth (MRQ)

-293.94%

-32.96%

Revenue Growth (TTM)

147.90%

-26.95%

Gross Profit Margin (TTM)

--

35.55%

Net Profit Margin (TTM)

-40.09%

-44.14%

Beta

2.4

3.4

MBIA (from Yahoo Finance):

MBI operates in two segments, Insurance and Investment Management Services. The Insurance segment issues financial guarantees for municipal bonds, asset-backed and mortgage-backed securities, investor-owned utility bonds, bonds backed by publicly or privately funded public-purpose projects, bonds issued by sovereign and sub-sovereign entities, and bonds backed by other revenue sources, such as corporate franchise revenues. It also insures credit default swaps on structured pools of corporate obligations, residential mortgage-backed securities, and commercial real estate backed securities and loans.

If the Commercial Real Estate market problems deepen much more, MBI will be in deep trouble. If residential real estate problems worsen much more, MBI will be in deep trouble. Who knows how many other situations will bring MBI to the brink of bankruptcy, but they are likely many. California bonds are a possibility. MBI barely survived last year. MBI still has over 80% debt/capital. In another credit crunch it seems almost sure to founder. Plus, its 1 year analysts average target price, $4.33, is currently significantly below the current price, $5.14.

1 year chart of MBIA (Click to enlarge)

CETV (from Yahoo Finance):

CETV, together with its subsidiaries, invests in, develops, and operates commercial television channels in central and eastern Europe.

If Europe languishes, especially Eastern Europe, CETV will be hurt. The fact that it is headquartered in Bermuda probably does not work in its favor.

1 year chart of CETV (Click to enlarge)

Good luck investing.

Disclosure: No positions at this time

Source: MBIA and CETV: 2 Stocks for a Downturn