Value Microcaps Motherboard

[cliffvb]

Wade, I have never felt comfortable with the idea of shorting. I have seen plenty of overvalued stocks that continue on an upward trajectory far beyond anything that is reasonable. That being said, I also can't ignore all the problems that are out there now and yesterday morning I just shorted an individual stock for the first time. Perhaps there would be enough interest for someone to set up a separate "short" board on IHUB.

Btw, the stock I shorted was DSL. They are a mortgage lender based in California, where property values are tanking now. (A friend went to a new home development east of LA and was told that prices are 20% below a year ago.) 89% of DSL's loan portfolio is on California properties, 82% are ARMS with negative amortization, and 80% are based on borrowers non-verified income. The lion's share of their loans have originated in the last 3 years. This seems like a recipe that is ripe for continuing huge loan losses in the coming year, possibly even bankruptcy. I tried to short this one even earlier but my broker could not find shares to borrow.