It's a more aggressive approach than many investors employ, because being a short seller is infinitely more risky than buying shares.
But when you short, the potential loss is unlimited because there's no guarantee a stock's price will fall; it could instead rally to extreme highs.
These variables include low institutional ownership, low cash reserves, and market caps smaller than $250 million, among other characteristics that could signal a vulnerable stock.
Uber (UBER) is another stock he really likes, although he allocates less toward it because it's a newer company.
But everywhere I go, there's Uber.
Persons:
David Capablanca, Capablanca, there's Uber
Organizations:
Service, Business, Trust, Nasdaq, Capablanca, Apple
Locations:
Argentina, Galapagos, Columbia, Italy, India