Seeking Alpha
0
All posts from Seeking Alpha
Seeking Alpha in Seeking Alpha - Read, Decide, Invest.,

Anatomy Of A Short (Or Long) Part 5 - A Live Case Study Using Herbalife - Net Profit Margins

This is Part 5 of a series of articles that will take the investor through the following;

  1. A checklist approach to taking on a position (short or long)
  2. A number of quantitative metrics that could be used to assess one's conviction on the opportunity at hand.
  3. A number of qualitative items that could be used to assess one's conviction on the opportunity at hand.

If there is a theme song for those who attempt to short potential business failures it would be Tom Petty's, "The Waiting"

The waiting is the hardest part

Every day you see one more card

You take it on faith, you take it to the heart

The waiting is the hardest part

If there is a predominant behavior to the newer "shorty" getting into the game of shorting potential business failures, it's the impatience. Business failure happens far more often than people realize. But it's usually… Read More …