Took a beating today

Question: I can’t remember the last time I lost this much in one day except the day the market opened after 9-11. And I thought I was diversified.

Answer: I’ve had a couple of “virtual” portfolios of shorted stocks, defined by screening criteria, since early May.

The best performing screen, in that short time period, has been: debt-equity ratio over 5, p/b over 3, p/cf over 20.

The worst screen, in that short time period, has been p/eg over 3, p/b over 3, p/s over 4, p/cf over 20.

Right now, I am short CNT, PVR, NXST, and SONO. I am somewhat intringued by EDLG, which reports a debt-to-equity ratio of 1885, a p/b of over 100, and a p/cf also over 100. Granted, student loans seem like a great business, but those numbers are pretty eye-popping.

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