Investing Experts Short + long strategies and what alpha's really all about
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Nov 13, 2024 Edward Schneider, a veteran analyst at Seeking Alpha, dives into his investment philosophy centered on shorting fundamentally overvalued companies. He discusses the intricacies of timing in the semiconductor cycle and the challenges of value investing in the tech sector. Schneider emphasizes the importance of reasonable growth stocks while sharing insights on setting fair valuations, particularly for Illumina. His expert take on short-selling strategies in tech adds a fascinating layer to understanding market dynamics.
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NWTN Short
- Edward Schneider discusses his unique short strategy focusing on extremely fundamentally overvalued companies.
- He shares an example of NWTN, a company with a $2 billion market cap that dropped to $0.80 after his analysis.
Semiconductor Cycle Insights
- The semiconductor cycle is important, but the dynamics have changed.
- AI introduces a new element, where companies like NVIDIA benefit while others suffer, unlike the past when all semiconductor stocks moved together.
Shorting Metrics
- When shorting, focus on tech/media companies with low revenue, high losses, minimal cash, and preferably net debt.
- Avoid companies with real assets like biotech or mining; fundamental risk must be zero.