The Shorting of Frauds, Overhyped and Bankrupt Stocks Journal

Looking at MDBX, its clear to me that this type of action is the true test of a short seller. If he is still in business after that he won't ever go broke
I really think that as a rule one should always cover a stock that goes against you by 100%, specially if that happened in 1 week or less

It might be overvalued, be a scam and have 100% chance of coming back down but if you short an MDBX once every 10 years you will still lose everything
 
shorting a runaway momentum stock b/c of a fundamental thesis (e.g. fraud) w/o a stop is a recipe for disaster. it's much better and easier to just wait for a change in trend before shorting (e.g. price below 20 or 50 DMA) - yes you'll miss out on the first 10-20% drop but no one ever calls the top on a consistent basis.
 
Quote from FrankSlaughtery:

shorting a runaway momentum stock b/c of a fundamental thesis (e.g. fraud) w/o a stop is a recipe for disaster. it's much better and easier to just wait for a change in trend before shorting (e.g. price below 20 or 50 DMA) - yes you'll miss out on the first 10-20% drop but no one ever calls the top on a consistent basis.
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I tend to agree with this, I have been following this stock for a while and put a quick trade here and there but I'm scared to short for longer, this stock is choppy as hell and the momentum still seem to be to the upside
 
UNXL just hit $28. I just don't know how much of the hype is real and how much is bullshit. Analyzing touch screen market share possibilities seem difficult to me
 
imo MDBX is a totally different story since it's OTCBB where 100% moves aren't too uncommon.

I've been eyeing an UNXL short. Looks a little dangerous though
 
The thing that drives a really strong bear thesis for me in UNXL is that even if the contract with a large PC manufacturer is legit, and they do post that 15M in top line for the 1stQ, it's not like they got the contract for the iWatch. Short sightedness aside, so what if they got the contract with say DELL or HP? Everyone knows the trend is towards mobile, while UNXL's filings say it's for the PC and laptop/notebook mkts. This leads me to believe a lot of it is hype, and even if the #'s are real, this is likely priced in.
 
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