Monday, January 6, 2014

Why I short Twitter

Twitter has almost tripled in price since its IPO since November, so why I am shorting this overly bullish stock? That is because I smell blood in the coming days ahead:

  • The Dow is very overbought. It is a matter of time that a correction comes.
  • Twitter is overvalued. Once the Dow "crashes", Twitter will go down very fast with it.
  • There are high expectations of Twitter's earnings at the end of the month. Any disappointment, it will crash
  • It seems analysts are bent on sending the stock lower with more "sell" each passing day
  • Feb could see a bout of selling following employees ability to sell shares from Feb 15 onwards
  • From May 6, senior personnel in the company could sell shares in Twitter 

Bearing these in mind, I will progressively sell Twitter shares, starting at $65.00

No comments:

Post a Comment