From Name: From Email: To Name: To Email: Optional Message: Do valuation shorts work? from CFA Institute's Enterprising Investor Reasons to short a stock fall broadly into two “buckets:" Fraud and valuation. Fraud shorts are stocks where the (short) investor believes the company is misleading the public about its business. This can range from mild and small-scale, such as aggressive but GAAP-defensible accounting, all the way up to massive and brazen fraud, such as fictitious revenue and profits. Let’s Gowex is a recent and spectacular example of the latter. more 7701 Las Colinas Blvd., Ste. 800, Irving, TX 75063