This idea that you make money if you short something where the mkt cap is less than the net debt is ridiculous. My biggest holding is DBI, where i started buying at $2.30 , debt was $1.9 bn, equity 1.1 bn. That was 2.5 years ago. It is now $3.83, paid a 9% yield throughout, and i've made 38% annualised and 150% total return on invested capital. And guess what, the debt still exceeds the mkt cap, but it is one of the safest stocks you can own on the ASX; literally. The beta is zeo. You can do a regression analysis with stock price moves for DBI versus the market overall and the correlation is zero.
MIN Price at posting:
$18.95 Sentiment: Buy Disclosure: Held
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