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Re: Would This Work?
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Originally Posted by bovverd
As you may have experienced yourselves when running potential Rule 1 Company numbers you do often find companies whos share price is way way over sticker.
Are these companies worth shorting with options ?
As I understand from the R1 principles if we discover a stock thats share price is way over sticker then in theory its over valued and just like under valued stock will be likely to face a correction in its price to bring it back in line with what it should be worth.
What made me think of this was a company whos sticker is BVN. It has a sticker of 32.56 but is trading at 53. So is it overvalued by 20 ?
Has anyone had any success shorting stocks when the price is way way over sticker ?
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my suggestion is to look for sick companies to short, not healthy ones
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