Assisted Living's Teetering

When shorting a stock, it's important that the bearish position be a part of some larger scheme. If you are a committed, dyed-in-the-wool bear with a dedicated short fund, then shorting is your only game. You're just a backward buyer, buying only after you've sold.

But there are other scenarios for short-selling. For example:

• Perhaps you are a professional pessimist who has a knack for finding chinks in the armor of an attractive stock.
• Perhaps you have just found a stock that is so extremely overvalued because of an enthusiastic public that you feel the "all in" signal has been given, thereby clearing the way for a reversal.
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