The right due diligence on a deal can determine if it’s priced well and if there’s a lot of loose stock. After a few days the volumes usually drop hard and it wouldn’t take much of a short to send it plummeting. The sector usually has infrequent, predictable news flow not long after listing. Some ethical funds are doing this. The hardest part in shorting any small/micro cap stock is getting the shares to borrow, but with the right connections its possible in some cases.
