Banter and General Comments, page-12418

There's this misconception from holders that short sellers don't do their homework. Short sellers do just as much homework as holders. They too can lose money. So why would they put in any less homework than holders? I'd argue that they do more homework. They have to pay a continuous fee to the holders they are borrowing from and any dividends paid during the period they borrow. So there is more at-risk shorting. So it stands to reason that they would want to make sure that their bet is sound. How often do you see a top 10 shorted stock come out with bad news? Short sellers are often on the ball. They don't always get it right, but I've seen them get it right more often than not in recent times.