International Investing

This article from Whiskey & Gunpowder makes a strong case for shorting Bankrate and a good primer on what to look for in short sales in general:

Bankrate exhibits several traits of what you want to look for in a short sale:

1.    An expensive stock price
2.    A contracting customer base
3.    A history of making value-destroying acquisitions
4.    Aggressive accounting
5.    A very generous stock option program.

An Expensive Stock

Bankrate is a pricey stock. Given its stratospheric valuation, the market expects Bankrate to deliver blistering sales growth as far as the eye can see. Keep in mind that making a profit on the short side of Bankrate stock isn’t a bet that business will fall apart overnight; a successful short sale only requires the market to lower its expectation of Bankrate’s growth potential just a bit.