Chad Brand

Searching for Shorts

Christopher - This is not to say that you just go out and short the list because the names show up on it. It's just a way to get a list and then you can work off of it to try and find names that you think make for attractive shorts.

David - The high valuations suggest investor optimism for these stocks is very high. The key would be to explore what exactly these expectations are, and most importantly, how likely is it that such expectations are exceeded. After all, stocks go up because current expectations prove too conservative. When expecations are exceedingly high, the odds of disappointment are decently high.