Citron Research...

Investment Analysis Clubs Saul’s Investing Discussions
1

They’ve been busy the last few weeks shorting some of our stocks; namely Nvidia and Shopify.

Does anyone here have a strategy for when Citron comes down on one of your investments?

For example, do you sell your stock (with plans to buy back after n days, if so how many) or sell calls against your shares (knowing they’ll probably expire worthless) or do you purchase puts? Or do most just sit tight and use any pullback as a buying opportunity… These guys unfortunately get a lot of air time on CNBC to publicize their shorts and it often has a short term negative effect. I usually ignore their calls but have recently seen a number of companies pullback soon after Citron has made one of their short-sighted calls.

Inquiring minds would like to know…

Take care,

Robear

2

I have had some success using it as a buying opportunity, particularly in the case of using some Ubiquiti call options.

With NVidia, it has long been my largest position, so I didn’t add, but I might have if I wasn’t already at a >20% NVDA position.

3

I hold my current shares
Reevaluate my conviction in the stock, its story, and the numbers supporting it
Reevaluate my portfolio and determine if I want to add to the stock

FYI - I added to SHOP recently as I had been looking for opportunities to increase its place in my portfolio.