#281: When to short shares

Simon Shares

• Just two weeks ago I was moaning about a sideways market going nowhere, now we have eight green days in a row with local markets joining much of the world at all time highs.
• Famous Brands* (JSE code: FBR) trading update was bleak, very bleak. Interest costs we expected, they suggest SA doing well enough. But UK losing money after paying some R2billion is a shocker.
• PPC (JSE code: PPC) has doubled in price, remember I said wait for doubling and then buy. So heres your entry. 
• Santova* (JSE code: SNV) comes out with very good trading update considering ZAR strength during the period.
• List of all listed ETFs ranked by their TERs. A great list from Kristia.
• Up coming events;
  • FX – Wealth Creator or Poverty stamp
  • The Traders Life: The tools 

* I hold ungeared positions.

When to short shares

A recent flurry of emails from people shorting stocks and getting burnt. In particular shorts on Capitec*, Naspers and Kumba. A side note that emailing me is a form of confirmation bias as the emailers wanted me to essentially confirm they were right and the market was wrong.

First rule is don't.

Second rule is don't short on fundamentals. Short on price action, if you want coupled with fundamentals. But don't just decide a share is expensive so now it must go down, it can get way more expensive.

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