Ha. Pretty simple really.
In the case of PCLN, its easy. The PE is too high, there is no dividend, and the competition is growing every quarter. I also don't foresee any major press releases that could slam dunk kill a short position.
I think their earnings on 8/3 will come in on the lower end, and I think geopolitical factors are going to force them to re-evaluate their outlook for the near future. They don't deserve the multiple they trade at. I see very little growth and growing competition.
I wondered why their price is so high...so they don't pay dividend but pay all their earnings to their shareholders.
Growing competition and little growth indicate that their upcoming earning will be lower.
What a good analysis !
I do think it's time to short the stock(or buy the put option?) !
