Shorting Highly Valued Stocks
Hey guys, I wanted to get your opinions on this. The Facebook IPO made me start thinking of highly valued stocks. I understand the need for money, since the market can stay irrational longer than you stay solvent. But couldn’t you run a screen, try to reverse engineer what assumptions are based in valuations depending on how that industry is valued, then try to find very unreasonable stocks. Seems simple enough in theory, but I was curious what its like in practice.
Study together. Pass together.
Join the world's largest online community of CFA, CAIA and FRM candidates.