May I ask what mechanism you use to short MQG? Shorting seems so much harder than long only investing and requires bravery and strong cover discipline. For example I would have gone short Tesla (and crypto currency) a few months ago and I still think it is an exceptional short opportunity for a whole host of reasons too long to mention here. The problem being is that I would have had to cover much of that position by now at large losses.
Are you an institutional investor doing this or private investor? Although I agree with your valuation argument and MQG is unlikely to be a 'dangerous' short, you must be aware that you are playing with fire. It is worth reading some of the latest Bronte Capital reports as John Hempton is one of the smartest investors around and has a rigorous logical framework for shorting. Only problem is that they have been smashed by an irrational market and were forced to cover, which has resulted in a permanent loss of capital for the fund. Can you remain solvent longer than the market can remain irrational?
MQG Price at posting:
$197.83 Sentiment: Hold Disclosure: Held
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