research on shorting stocks

This is a discussion on research on shorting stocks within the Economic & Fundamental Analysis forums, part of the Methods category; I found a stock that had a market cap of $190 million and according to their SEC filings the company ...

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Old Aug 5, 2010, 4:15pm   #1
Joined Dec 2008
research on shorting stocks

I found a stock that had a market cap of $190 million and
according to their SEC filings the company has around a total of $500 in assets and no income.

and I am pretty sure this is the one where the owners issued themselves an extra billion shares of stock. yes it's a billion not a million.
so far they haven't sold any but when they start it seems kind of obvious where the price is going to go.

when you have 100 million shares outstanding then someone issues another billion shares, in my way of thinking if they sell the price pretty much has to start going down.

there are a bunch of other reasons why this company is a good one to short, but you get the idea.

I am short this stock and just waiting for them to do some kind of toxic financing, or for them to start dumping some of their extra billion shares on the market.

anyway, I would just like to know if anyone else is doing this kind of trading and would like to share research?

I am a really crummy trader so I need to find companies like this where I have a massive edge, then even I can't screw it up.
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