Shortlist For Shorting Stocks (Updated)

Well this was posted back in June 2011, which in itself was an update from December 2010. Almost 6 months now, KNM is now 97 sen which meant that it lost more than 50% (so how, Simon, where are the back stoppers ... just a shoutout to one of the commentators). Of course if taken with the original posting, the stock would be considered decimated from the RM2.89 level when i first wrote the shorting post.

Green Packet is more resilient. Its now at 59 sen, meaning it lost just 21%.

Would these two still be worth shorting at current level? Even if they were worth shorting, are they still the best stocks to short from the whole of Bursa?

The answers is Yes and Yes. Green Packet is more an Angry Bird stock, you have to keep hitting the walls, and the walls are creaking and moving ... you sometimes have to wait for the egg to explode for the thing to crumble.

Friday, June 03, 2011

I think this was posted last year 29 December. KNM closed yesterday at RM2.01. Green Packet closed at 0.75. GPacket is doing very well price wise, we'll see, we'll see... Anyways, some friends visited a recent exhibition in KL where KNM had a booth. The picture may tell a wonderful story of the company ... (click for larger image to read the inscriptions).


29 December 2010

Unfortunately, we don't get to short stocks in Malaysia, and in many markets actually. When we think of shorting stocks, it is very easy to pick the highly speculative ones with zero fundamentals. Its a no brainer to lump stocks such as Maxbiz, Compugates or Tejari and the likes to the category of stocks to short. In fact, if you try to short these stocks, they will come back to bite you as they are highly speculative and share prices could double or triple for no reason if they "manage" the stock price well enough.

A genuine stock shorting process involves company that is running on supposedly good fundamentals, but you do not think that that is the case in reality. Some will ask, why even talk about them and make enemies. I think its pathetic to only talk about good stocks. Sometimes its good to have an opinion of stocks you do not like.

However, to save myself, I will not elaborate on why I think they are my favourite stocks to short, but let me assure you that I stand behind my views 100%. I will check back on their respective share prices every 3 months and see how they fare. I think both are excellent stocks to short on a 1-2 year time horizon.

The stocks on my list that no one wants to be in:

KNM ($2.89)

Green Packet ($0.71)

I am sure plenty will differ in their views, and thats what makes a good liquid market place, there are always buyers and sellers. If you go long, please rub it in my nose 3,6,9,12 months down the road if they continue to perform well. I will accept the dressing down gleefully.

NOTE: The above opinion is not an invitation to buy or sell. It serves as a blogging activity of my investing thoughts and ideas, this does not represent an investment advisory service as I charge no subscription or management fees (donations are welcomed though). The content on this site is provided as general information only and should not be taken as investment advice. All site content, shall not be construed as a recommendation to buy or sell any security or financial instrument. The ideas expressed are solely the opinions of the author. Any action that you take as a result of information, analysis, or commentary on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.


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