After the good doctor dropped this in the comments section of my previous post I ran a screen for companies with debt to equity over 20, here are some names from The PPT. PBI, PM, TEN, ATPG, HW.
Then I ran a screen for utilities that have debt/equity over 2x and short term debt over $1 Billion.
AES, CPN, HNP, NGG, OKE, and VE.
One Response to Possible “Dr. Big Boss Shorts”
nice man, good work using the short term debt screen also. I would avoid shorting utilities though as they generally have a high dividend yield (which you pay out when short) and also they will be viewed as a defensive place to park cash by all the ass clown mutual fund managers (as will stocks like GIS, KMB, etc) so they will likely do relatively well in a market pull back.
ATP is a good place to start as their management team is pretty bad. EXH is a good short. Anything with debt/equity well over >50% is probably hosed but I like to look for companies that have leverage by looking at (debt/ebitda) because that looks at the cash flow impact of servicing their debt so that is something else you may want to take a look at in your screens. I would also include something that screens out companies with high cash balances.
nice start though and remember to keep your short positions small, maybe half the size a long position might be.