The 3 Most Short-Sold Stocks to Avoid at All Costs

InvestorPlace2023-04-05

Avoid the most short-sold stocks, which will fall quickly when positive market sentiment reverses.Chewy (CHWY): Overvaluation in shares reflects enthusiastic investors betting on the low likelihood of...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

xiaobaii
2023-04-06
xiaobaii
like & comment please
Seah CL
2023-04-06
Seah CL
K
- xiaobaii:
  like & comment please
Grumpy Cat
2023-04-05
Grumpy Cat
Everything is burning.

Leave a comment

186

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/1121391498?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2023-04-05 23:26","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"1121391498","market":"us","top_or_hot":-1,"title":"The 3 Most Short-Sold Stocks to Avoid at All Costs","media":"InvestorPlace","content":"<div>\n<p>Avoid the most short-sold stocks, which will fall quickly when positive market sentiment reverses.Chewy (CHWY): Overvaluation in shares reflects enthusiastic investors betting on the low likelihood of...</p>\n\n<a href=\"https://investorplace.com/2023/04/the-3-most-short-sold-stocks-to-avoid-at-all-costs/\">Source Link</a>\n\n</div>\n","source":"investorplace","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>The 3 Most Short-Sold Stocks to Avoid at All Costs</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nThe 3 Most Short-Sold Stocks to Avoid at All Costs\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-04-05 23:26 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2023/04/the-3-most-short-sold-stocks-to-avoid-at-all-costs/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Avoid the most short-sold stocks, which will fall quickly when positive market sentiment reverses.Chewy (CHWY): Overvaluation in shares reflects enthusiastic investors betting on the low likelihood of...</p>\n\n<a href=\"https://investorplace.com/2023/04/the-3-most-short-sold-stocks-to-avoid-at-all-costs/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"CHWY","symbol_name":"Chewy, Inc.","start_time":0,"source_url":"https://investorplace.com/2023/04/the-3-most-short-sold-stocks-to-avoid-at-all-costs/","article_id":"1121391498","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=1121391498","pubTimestamp":1680708372,"columns":[],"sourceInfo":{"source_id":"investorplace","name":"InvestorPlace"},"weMediaInfo":null,"summary":"Avoid the most short-sold stocks, which will fall quickly when positive market sentiment reverses.Ch","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"CHWY":"Chewy, Inc.","CVNA":"Carvana Co.","UPST":"Upstart Holdings, Inc."},"translate_title":"不惜一切代价避免卖空的3只股票","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CHWY":0.9,"CVNA":0.9,"UPST":0.9},"content_text":"Avoid the most short-sold stocks, which will fall quickly when positive market sentiment reverses.Chewy (CHWY): Overvaluation in shares reflects enthusiastic investors betting on the low likelihood of profit margins expanding.Carvana (CVNA): Refinancing of high debt buys some time but does not change the chances of bankruptcy in the future.Upstart (UPST): Pause in small business loans will lead to a write-off in the future.When stock markets ended the first quarter of this year with strong gains, speculators bought the most short-sold stocks. They bet that despite the deteriorating business conditions, the stock would overcome unfavorable valuations.Although bears hold a high short float against the stock, traders are betting on a short squeeze. The stock price rises rapidly when bearish investors buy back stock to avoid further losses. However, buy-and-hold investors should avoid the most short-sold stocks at all costs.Market sentiment may reverse in an instant. The buying euphoria in the three stocks discussed below could fall again without warning.Chewy (CHWY)Chewy (NASDAQ: CHWY) is a consumer cyclical online retailer of pet food. In the fourth quarter, it posted non-GAAP earnings per share of just 16 cents.Its revenue grew by 13.4% Y/Y to $2.71 billion. Chewy is among the most short-sold stocks. Markets are skeptical that the company will grow its net sales beyond its 10% to 12% forecast for the year.Chewy expects a slight decline in EBITDA guidance for this year. Chief Financial Officer Mario Marte said that it is prioritizing cost efficiency over earnings. To better fit more of an order in a single package, it needs to develop its operating logistics.Shareholders should brace for a correction when the stock trades at a price-to-earnings of over 300 times. Chewy’s competitors may also expand their gross margin by increasing profits per shipment. The company may need to increase its sales, general, and administration costs to support margins. This is already pressuring Chewy’s EBITDA this year.Carvana (CVNA)Carvana (NYSE: CVNA) stock has a short percentage of a float of 73.9%, according to Stockrover. On March 22, it announced an exchange offer to cut its interest costs by around $100 million. The offer will cut its unsecured bond debt by $1.3 billion.Carvana, which speculators thought would disrupt the used automobile market during the pandemic, has troubling financing issues. Bondholders must trade in their debt, which yields around 30% with new debt.The company is offering only between 63 cents and 81 cents on every dollar. Unfortunately, the business will probably weaken further. This increases the risk of Carvana defaulting on its bonds in the future.In the fourth quarter, Carvana posted a 23% decline in retail unit sales to 86,977. Its net loss margin worsened to -50.8%, compared to -4.8% last year. The firm lost $7.61 a share. The company expects retail units sold in Q1 2023 to fall again. It will need to work down its large inventory, incurring more losses.Upstart (UPST)Upstart (NASDAQ: UPST) is an artificial intelligence lending platform. UPST stock once traded at over $300 in 2021, well before the hype of AI. This is among the most short-sold stocks at a 41.0% short percent of the stock’s float.The company, which posted a 52% decrease in revenue to $147 million in Q4 of 2022, runs a broken business. It lost $58.5 million when its fee revenue fell. The company posted revenue of only $156 million. In addition, the loan business is worsening.The volume of loan transactions across its platform fell by 69% to 154,000 loans. Automotive loans are stagnating. People are canceling plans to buy vehicles amid high inflation eroding their disposable incomes.The company paused its small business loan. CFO Sanjay Datta said it will get back to those customers at the right time. The unknown timeline should trouble investors.Shareholders should brace for an erosion in Upstart’s unrestricted cash position. The company needs to deploy cash to reduce its net debt. After it wasted around $25 million in buying back stock, expect Upstart to buy more shares.","kind":"news","is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":9948503960,"gmtCreate":1680734903851,"gmtModify":1680734906473,"author":{"id":"3571345352614779","authorId":"3571345352614779","name":"xiaobaii","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3571345352614779","authorIdStr":"3571345352614779"},"htmlText":"&nbsp;like &amp; comment please","listText":"&nbsp;like &amp; comment please","text":"like & comment please","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9948503960","repostId":1121391498,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9948279500,"gmtCreate":1680732491101,"gmtModify":1680732494758,"author":{"id":"4102135564535180","authorId":"4102135564535180","name":"Seah CL","avatar":"https://community-static.tradeup.com/news/970bca7b04e85a42a2c8eabed7ec96d0","vip":1,"crmLevel":3,"crmLevelSwitch":0,"idStr":"4102135564535180","authorIdStr":"4102135564535180"},"htmlText":"K","listText":"K","text":"K","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9948279500","repostId":1121391498,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":106223836,"gmtCreate":1680734914898,"gmtModify":1680734918271,"authorId":3571345352614779,"author":{"id":3571345352614779,"idStr":"3571345352614779","authorId":3571345352614779,"name":"xiaobaii","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9948279500,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\"><span class=\"Apple-converted-space\"> </span>like &amp; comment please</span>","text":"<span class=\"s1\"><span class=\"Apple-converted-space\"> </span>like &amp; comment please</span>","html":"<span class=\"s1\"><span class=\"Apple-converted-space\"> </span>like &amp; comment please</span>"}],"langContent":"EN"},{"id":9948696247,"gmtCreate":1680693037390,"gmtModify":1680693041039,"author":{"id":"4128529562415932","authorId":"4128529562415932","name":"Grumpy Cat","avatar":"https://community-static.tradeup.com/news/1a6e0322f5b01c133535886ac9ddb5ef","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"4128529562415932","authorIdStr":"4128529562415932"},"htmlText":"Everything is burning.","listText":"Everything is burning.","text":"Everything is burning.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":15,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9948696247","repostId":1121391498,"repostType":2,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":186,"commentSize":3,"repostSize":4,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/1121391498"}