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MyRedditiJustMade t1_j268sgu wrote

Reply to comment by albertez in Thoughts on Buying Puts for Home Construction companies by Realistic_Weight_703

What’s the garbage

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albertez t1_j26c89p wrote

Unprofitable tech and fintech, unprofitable retail, SaaS companies trading at 30x revenue, SPACs, meme stocks, etc. There is a huge amount of loss making trash in the market that is begging to be shorted.

Homebuilders face a tough 2023, but they are wildly profitable and cheaply valued today and have balance sheets that should stand up well to a big downturn in demand, with margins that are so good that they’ll likely still be profitable even if revenue craters.

Nobody knows anything, but feels like looking for blowups in this sector is unnecessary when there is so much low hanging fruit.

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MyRedditiJustMade t1_j26dsz0 wrote

Appreciate it . Never shorted before so I’ve been doing a lot of research tryna figure out which companies have the most risk . What do you think about BDCs and private equity firms such as Blackstone , KKR and Ares ?

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