Here's How to Seek Out and Short 'Dead Companies Walking'

Investors bold enough to short companies should seek targets in industries that could go away entirely like video rental stores or pager companies, said Scott Fearon, author of 'Dead Companies Walking'. Although he avoids shorting high profile companies, Fearon said that JC Penney and Sears will have difficult times regaining their standing in the retail industry and that Herbalife's product is questionable. On the long side Fearon is bullish on homebuilders Green Brick Partners and LGI Homes. He is also positive on Core-Mark which distributes food and snacks to convenience stores in San Francisco.