This is exactly what happened to Trvelzoo today and I’m bummed because I couldn’t get a borrow, locate, shares to short, what have you yesterday… If you would have signed up to my real time trade alerts newsletter for $30 you would have known I was trying to short TZOO at $85 a share!!! You could have sold call options against TZOO and made a bundle like I did today, or you could have watched from the sidlines grinning!
Most of my readers know I am bearish on TZOO — (still am even at $56 by the way, though I am still holding my 5 OCtober $90 calls and my long 3 $100 october calls put spread which should earn the fund a solid 3, 000 today (just a .001% gain overall, but I’ll take it!)…
There are many other shorts still out there to tackle, and I view LNKD, OPEN, CRM, and others as equally ready for a 35% drop in the near future, although CRM is being annoying lately and the VMW beat looked solid (note RVBD was manhandled on earnings however missing by like three cents…)
In any event, valuations don’t matter until they do — saying high PE stocks make bad shorts means you would have missed the 2007-March 2009 selloff from the short side and likely would have been caught long. My investment clients were told to get out… and advised to sell newspapers, AIG, Freddie, Fannie, etc… for my advisory service…
Right now I am making similar calls and think that the best opportunities are on the short side…
