10 Strong Sells: Screening for Overvalued Stocks to Short

Hedgephone submits:When screening for short positions, remember that the most important factor in making money from the short side is discovering fraudulent financial statements or companies that are simply never going to grow into their valuations.

BySkeptical12: Price action and fundamentals are not always aligned. When stocks go up, markets are usually pricing in stronger earnings expectations, but short-term price action and long-term fundamentals vary.

By Rajiv Tarigopula:Recently, one of my Seeking Alpha colleagues posted a piece on what he considered his "core holdings" - stocks (most generally regarded as blue-chip investments) that he would buy and hold forever.

By Hedgephone:Stocks are looking pretty overbought and overvalued right now, and we think the time is right to start shorting some things that are the most egregiously pumped up on hope right now. The following 5 stocks trade at multiples only an investment banker could love, and we have some suggestions on how to play the short side here using options to limit your risk.

By now everyone and their kitchen sink has speculated on what caused the great precious waterfall which started on April 12 and continued for the next four days. The factual reason for the biggest gold down days in history will likely remain unknown. In fact, in a sea of unfounded opinions, the only thing missing so far has been an informed opinion on what is really happening in some market - be it the paper of physical, especially in the aftermath of the unprecedented scramble to buy physical, not paper, gold and silver.

By Bret Jensen:One of the few profitable plays in the three trading sessions after President Obama's re-election has been short plays. I consistently use bear market call spreads to establish short positions in what I consider overvalued equities. This lowers the volatility of my overall portfolio and at least gives me something to smile about when the market sells off like it did last week.

ByChristopher F. Davis:Those who follow precious metals have likely taken note that gold is trading at a higher price than platinum recently. This is historically very rare and thus suggests to this author that platinum may soon rebound above gold prices. Since the mid 1990s platinum has generally traded 50% to 100% higher than gold.