Robert Prather: A Crash Course on Short Selling

<p>Hey guys! This week’s guest is Robert Prather, founder of <a href="https://www.visionro.com/about/" target="_blank">Vision Research</a> an independent research firm dedicated that focuses on the short side, and naturally this episode is a big crash course on short selling, so if you are interested in short selling or want to hear the point of view of a short seller this episode just for you! Rob shared how he analyzes the balance sheet, his idea generation, how to do due diligence and why he recommended shorting Allegro ($ALE) and Peloton ($PTON).</p> <ul> <li>[0:00] Why do you short sell?</li> <li>[4:30] Unique Aspects of Short Selling</li> <li>[7:40] Why is Short Selling Important?</li> <li>[9:20] Ideal Short Trade</li> <li>[10:00] Idea Generation</li> <li>[18:40] How to do Due Diligence?</li> <li>[21:00] Analyzing the Balance Sheet</li> <li>[31:00] What Industry does Robert shorts?</li> <li>[33:00] Allegro ($ALE): Short Thesis</li> <li>[42:00] Peloton ($PTON): Short Thesis</li> <li>[52:00] Covid Over Earners</li> <li>[56:00] Shorting Good Companies: Trex Company ($TREX)</li> <li>[1:03:00] Shorting SPACs</li> <li>[1:08:00] Structuring Short Books</li> <li>[1:15:00] More from Robert and Closing Questions</li> </ul> <p>Finally, a big thanks to the following sponsors for making the podcast a reality.</p> <p>If you like what you heard, check Rob out over at <a href="https://www.visionro.com/about/" target="_blank">Visionro.com</a></p> <p>Mitimco</p> <p>This episode is brought to you by MIT Investment Management Company, also known as MITIMCo, the investment office of MIT. Each year, MITIMCo invests in a handful of new emerging managers who it believes can earn exceptional long-term returns in support of MIT's mission. To help the emerging manager community more broadly, they created&nbsp;<a href="https://emergingmanagers.org/" rel="ugc noopener noreferrer" target="_blank">emergingmanagers.org</a>, a website for emerging manager stockpickers.</p> <p>For those looking to start a stock-p