Mystudents have learned to respect this annual list of the best stocks to short sell as every year my list outperforms the markets by a WIDE margin…if you like what you see, please do retweet, share on Facebook (FB), help me get the word out…I’m fighting an uphill battle here despite the stats being on my side as you’ll soon read.
Every year I’ve posted a list of the companies presenting at the LD Micro conference, a conference where all the cash starved companies hype themselves up to “investors” who like longshots and then promote the stories of these carcasses to their clients/investors…the epitome of the smallcap/microcap pump economy (RedChip used to do these two, but they burnt too many people with their Chinese investor relations clients)…put on my ex-friend Chris Lahiji who now probly doesn’t like me much given that I continually expose his little pumper’s conference, but hey, your education is more important than any friendship, you’re welcome in advance.
The 2009 list of LD Micro presenting companies included several outright scams, the 2010 LD Micro list also had quite a few rotten apples, and I showed off a few of the terrible charts in this post detailing the 20111 companies, but because I’m SO passionate about exposing these hypesters, I had an intern run actual #s to see how these carcass companies performed.
Because despite my bias and the fact that many smallcaps and microcaps will be busted for fraud and go out of business, maybe I was wrong about the group as a whole…maybe a few big winners would make the group outperform as a whole…it could happen, right?
As you can see by these stats below the LD Micro presenting companies underperform the overall market and the Russell 2000 dramatically…and the #s are even worse given that we didn’t include companies which no longer trade and/or have been investigated/halted.
In 2009 the average LD Micro conference presenter’s stock was up just 4% compared to 11% on the S&P 500 and 27% on the Russell 2000…in 2010 LD Micro presenting companies dropped roughly 16% compared to just a 6% loss on the Russell and an unchanged S&P 500…when this report was compiled in early 2011,LD Micro presenting companies were already trailing those indices by over 3%…anyone with more time please do finish the research and let’s see how the stocks did for all of 2012…my guess is they underperformed badly just as in years past.
Stock Returns from the LD Micro Conference 12/3/2009
Stock Returns from the LD Micro Conference 12/9/2010
Stock Returns from the LD Micro Conference 12/8/2011
I was supposed to do this post a while ago which is why the 2011 group don’t include full year 2012, but welcome to my life which is now dedicated to teaching mystudents…I still think with this data the point has been made and despite the stats, the multi-year bull market has created immense interest in smallcaps and micro caps so this year’s LD Micro conference going on right now is the biggest yet…congrats to Chris, if I had the time I would attend and take notes to see which companies I would short the most shares of 🙂
Here’s the 2012 list of the top 130 companies to short sell, past performance might not be indicative of future returns to the SEC, but playing the odds has made me $3 million and now my students nearly $6 million so they can go fuck themselves pretending it doesn’t matter 🙂