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Review by Michael Pellecchia
Short selling is not for every individual investor. It requires a surer command of company financials than most people are willing to develop. And, since many short sellers got killed in 1991-93, even more caution is warranted. The people who do profit from collapse, often profit handsomely. Short sellers of Crazy Eddie bought for $2 and sold for $40 in less than a year. Like long investors, they buy low and sell high. Unlike long investors, they sell first, then buy.
That said, the discipline of the short seller is one anybody can use. There just haven't been too many books devoted solely to this subject. Katherine Staley is filling the void quite well. She is an experienced short seller, knows how to do and teach financial statement analysis, and according to the jacket copy, she "lectures on the absence of economic reality in publicly reported earnings announcements."
Anyone needing a one-volume current reference on short selling strategies can stop their search with The Art of Short Selling.
Michael Pellecchia writes about business and finance books each month He can be reached at michael_pellecchia@bookpage.com.
©1997, ProMotion, inc.
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