Let's clear something up right now.
Shorting isn't just about catching falling knives like AIG and Citigroup. (Though don't get us wrong -- it's important to look out for those, too.)
But often you have to dig even deeper, looking for companies that are employing accounting tricks to make their numbers seem greater than they actually are, which will come back to bite them in the rump later on.
This is exactly what John Del Vecchio, CFA -- leading forensic accountant and expert short-seller -- spends his time doing. And he's uncovered some pretty surprising facts.
He believes General Electric
He called out IBM
Del Vecchio recently recommended shorting shares of WMS Industries
His shorting colleague Matt Argersinger recommended investors short shares of Bally Technologies
And these are just a handful of ideas Del Vecchio and Argersinger are tossing around right now.
Care to chat?
To answer your questions about the role shorting can play in your portfolio or even the basics of a shorting strategy, we're offering you the opportunity to chat live with the Fool's shorting expert, John Del Vecchio, CFA (TMFFuz).
If you can't stay around for the full chat, but you'd like to learn more about Motley Fool BIG Short, enter your email address in the box below.
The Fool has shorted shares of Bally Technologies. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Motley Fool has a disclosure policy.