3 ms·

Shorting a stock isn't always practical. Stock buybacks can be deceptive if a company buys back stocks with debt and doesn't have proper cashflow to pay it off.

• forgetsusername 11y ago
  >Shorting a stock isn't always practical. Nor is it remotely the only way to assume a bearish position. >Stock buybacks can be deceptive if a company buys back stocks with debt and doesn't have proper cashflow to pay it off. You can't tell the cash flow and debt levels from the financial reporting? You don't account for this in your valuation? Where is the deception? Report it to the SEC. >Non-technical investors see the stock going up and keep piling more cash in. An equivalent number of people are "pulling cash out". A stock trade is just that: a trade. Again, what makes you a better judge of the "correct" price than those actually making the deal? >If you think markets are perfect, you have a lot to learn my friend Not sure where that comes from, but you're right, I do have more to learn. That said, it looks like I'm a few levels up on you (and far less confident in my ability to predict anything).