Which Is the Better Short: Penn Virginia vs. Swift Energy?

Short interest in Penn Virginia and Swift Energy is more than 30%.

Jul 18, 2014 at 11:15AM

Swift Energy (NYSE:SFY) and Penn Virginia (NYSE:PVA) are two of the most heavily shorted stocks in the energy sector. Currently 34.2% of Swift Energy's shares have been sold short while 34.1% of Penn Virginia's shares have been shorted by investors. Needless to say investors expect big drops in both stocks. 

What's intriguing about these two short ideas is the fact that both Swift Energy and Penn Virginia are focused on the Eagle Ford Shale to fuel growth. While the Eagle Ford Shale is the probably the hottest drilling play in America, investors don't think it can fuel gains for these two stocks.

One of the reasons investors are cautious on both companies is due to the aggressive use of debt to fuel drilling. However, that's not the main reason investors are betting against Swift Energy or Penn Virginia. So, to help investors better understand why these stocks are so heavily shorted I created the following slideshow presentation. It suggests which stock might be the better short candidate as well as which one could incinerate short-sellers while also providing an interesting bonus idea to keep an eye on.

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Matt DiLallo has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

A Financial Plan on an Index Card

Keeping it simple.

Aug 7, 2015 at 11:26AM

Two years ago, University of Chicago professor Harold Pollack wrote his entire financial plan on an index card.

It blew up. People loved the idea. Financial advice is often intentionally complicated. Obscurity lets advisors charge higher fees. But the most important parts are painfully simple. Here's how Pollack put it:

The card came out of chat I had regarding what I view as the financial industry's basic dilemma: The best investment advice fits on an index card. A commenter asked for the actual index card. Although I was originally speaking in metaphor, I grabbed a pen and one of my daughter's note cards, scribbled this out in maybe three minutes, snapped a picture with my iPhone, and the rest was history.

More advisors and investors caught onto the idea and started writing their own financial plans on a single index card.

I love the exercise, because it makes you think about what's important and forces you to be succinct.

So, here's my index-card financial plan:


Everything else is details. 

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