There are all sorts of known methods of investing and trading. Short selling is within the latter category; and there must be at least as many parties who have ineffectual methodologies as there are former ‘Active’ fund managers. My bet against LYFT, which has turned against me, involves a supposition that professional investors would underestimate the political issues believed to be in opposition to the firm. Shareholders and sell-side analysts know about the lawsuits and that the corporation is not profitable. However, the share price has now recovered so that it is approximately the same as when California passed its Assembly Bill 5–thus potentially making it a political matter for presidential candidates trying to win their party’s nomination, with attention to Super Tuesday.
However, if LYFT goes higher from here, it might be better to cash in what remains of value in my securities. It is not obvious what may happen though. Thinking twice, panic may not be the best option.
Legal news is probably behind the surge. A judge is unlikely to issue an injunction against Lyft’s competitor, Uber. Though it probably does not eliminate any political overhang, a legal ruling presumably should remove near-term risk.
It could ultimately be better to get back to methods that the famed investor Sir John Templeton might have liked.
Alternatively, there are other short selling tactics that work. They probably do not utilize the exact same thing as what is typically described as an information asymmetry, but involve knowing what those who influence the stock do not despite having access to all the same resources.
Jim Simons and his Medallion fund have unknown methods, but it would be very surprising if they did not sell stocks short regularly. His disciple, of sorts, George Zweig, evidently hasn’t done remarkably with his Signition Fund because information about returns probably would have been publicized if they were.
Issues may have been conflated pertaining to LYFT. It could be best to learn from mistakes.
However, if LYFT goes higher from here, it might be better to cash in what remains of value in my securities. It is not obvious what may happen though. Thinking twice, panic may not be the best option.
Legal news is probably behind the surge. A judge is unlikely to issue an injunction against Lyft’s competitor, Uber. Though it probably does not eliminate any political overhang, a legal ruling presumably should remove near-term risk.
It could ultimately be better to get back to methods that the famed investor Sir John Templeton might have liked.
Alternatively, there are other short selling tactics that work. They probably do not utilize the exact same thing as what is typically described as an information asymmetry, but involve knowing what those who influence the stock do not despite having access to all the same resources.
Jim Simons and his Medallion fund have unknown methods, but it would be very surprising if they did not sell stocks short regularly. His disciple, of sorts, George Zweig, evidently hasn’t done remarkably with his Signition Fund because information about returns probably would have been publicized if they were.
Issues may have been conflated pertaining to LYFT. It could be best to learn from mistakes.