Recently, a reader asked us on Twitter about shorting AT&T
In our video below, Fool analyst Rex Moore expands on this. With all the network problems and dropped calls, our reader was no doubt thinking how disliked the carrier seems to be. What's more, it seems many are waiting to buy an Apple
But Rex's advice is to avoid shorting companies where everyone already knows about all the bad news -- and thus it's already priced into the stock. Another example was Ford
Bottom line: A good short would be the opposite of what we're talking about -- a company you've identified as facing a lot of troubles and perhaps an eroding competitive advantage that not many investors know about, and whose stock price has a lot of good news priced in.
Watch the video here:
Fool analyst Rex Moore is very short with whiners. He owns no companies mentioned here. Apple and Ford Motor are Motley Fool Stock Advisor recommendations. Try any of our Foolish newsletter services free for 30 days. The Motley Fool has a disclosure policy.