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The Oil Chart Is Up, Your Fund Is Down—and It Never Owned a Barrel
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Why OpenTable is a Short
I have been told that you shouldn’t short high valuations. Short broken business models instead. A lot of guys have been shorting high valuation stocks like NetFlix and Amazon.com. They have gotten crushed as these businesses go from strength to strength. Now the market is afraid of anything that has a model that might be similar.
However, not all these web 2.0 business models will work out. Some of the stocks that are being mistaken as the next NetFlix will come crashing down. Remember once upon a time we all thought that AOL was going to take over the internet. However things do change. Anyways, a great example of a good short right now in this space of overvalued Web 2.0 companies is OpenTable.
Click here and open the PDF to get the full pitch - Open Table
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