Zeev's Turnips Patch-No Politics (ZEEV)

[langostino]

"How do they do it?"

With the massive short interest, obviously there are some others out there wondering exactly the same thing. Priced to perfection for hearty growth. These are the kinds that fall very hard when they slip up in any way.

A short interest that high is a big red flag. It's convenient to figure the guy on the other side of the trade is just blind and stupid to the obvious merits of the business. But anyone realistically knows that's not likely. That kind of short interest isn't a single hedge fund manager who came to the wrong conclusion. That's a whole lot of very smart guys, who almost certainly have superior trading tools, superior research, superior access to information. At least 8 times out of 10, they turn out to be right. I don't like being on the side of a trade that's on the 2 in 10 side of the odds. Worse, I don't ever want to be in a trade that doesn't offer me at least $2 of upside for every $1 of capped risk, and believe there's at least a 50/50 probability of the upside target being achieved rather than the downside alternative. I just don't see that sort of equation on BWLD.