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Thesis Capital Management CEO Stephen Roseman on the keys to safely shorting stocks and how to invest in stocks that are often overlooked or misunders...
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The losers probably because this fund is winning big but adding.
On distressed investments step on residents CEO a -- of capital management with two billion dollars in assets under management is here for the last hour of trading in a Fox Business -- to -- -- the -- flexible -- But -- really making some big bets on distressed.
Assets what do you look for how do you target these companies.
-- really stock price decliners so I would say definitely -- might be businesses that are fact winning.
Winners as businesses.
But -- suffered some recent headlines.
That have caused their stock prices to decline material at the end of the day as distressed investor frankly is any investor you wanna buy a company below its intrinsic value.
So for us what's attractive as finding things that are maligned and misunderstood.
Not particularly well like.
So you use the word misunderstood.
With the company give me a specific example of a company that.
Is misunderstood by the street -- -- to look at Barnes and -- friends again Barnes & Noble has been a lot of pressure we've got this huge relative sales what do you Barnes & Noble stocks down again.
Brick and mortar guys can't seem to make it work being is that -- is that an example above -- distressed.
Company to assure that and that's certainly the prevailing.
Opinion on the street a Barnes & Noble.
More to the point today Barnes & Noble is down more on Department of Justice headlines last night around apple.
And it's an anti trust issues with the publishers in mom and to be clearer Barnes and -- and much different position in apple because they have a -- relationship with the publishers so I would argue that while they have a rapidly growing business in the -- -- there are bricks and mortar business is still critical.
Also are -- on shorting stocks in and that is dangerous game I mean that is not for the faint of heart how do you how do you look at a company.
And decide to make a short position short call on the stock -- so.
The common wisdom is that all -- -- companies that are about to fail that somehow they're bankruptcy candidates -- that there frauds in -- and that's just not the case.
And really what you're saying when -- short a stock is at the current price doesn't reflect future economic reality so we look for changes in the business change in the economic environment changes in the regulatory environment that are negatively going to negatively impact the stock.
So but it's good that there are fund managers out there like you because -- -- -- -- would have the guts actually shirts socks as well as he did but that's -- we have funds up their -- Bob Marley tune just.
