Nov

25

Recent articles seem to indicate that the stocks with the greatest short interest perform significantly worse than random. The meme used to be the opposite. An example of changing cycles? Or all consistent with capital asset pricing model with volatility in a up versus down market?

Charles Pennington writes: 

Most of those studies don't include the cost of borrow. Ruger (ticker RGR) currently costs about 74% annualized to borrow. If you sell it short, it might go down, but it better go down in a hurry if you want to make any money. If you're long, you should haggle with your broker and get him to pay you some of that 74%.


Comments

Name

Email

Website

Speak your mind

Archives

Resources & Links

Search