My Short Call Has Been Vindicated

Dear One and All,

On 10/10/21, I said SFIX was a short. A couple of naysayers disagreed without offering any evidence other than to say (or imply) they were long the stock.

When I made my call --based on the company’s poor fundamentals-- the stock was trading around $40. Today, it closed at 9.16. Given that the company is unprofitable and is not forecasted to become profitable over the next three years, one has to wonder why anyone (1) would have bought it at its earlier, higher price and (2) why anyone who did buy failed to trail a stop.

Buying stocks of companies that have “a story”, but not strong fundamentals, isn’t “investing”. It’s just speculating. And it’s sheer arrogance if the position isn’t trailed with a stop.

Arindam

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