Our Danger Zone reports aim to identify firms that, despite more sanguine indications from traditional earnings and noise traders, have struggling businesses and highly overvalued stock prices. These reports show investors how to use our research and display the transparency of our analytical process. However, we understand that at the end of the day, investors care about one thing: performance.
It pays to read our Danger Zone reports. In 2019, 25 out of our 39 Danger Zone picks outperformed the market (S&P 500) as shorts. All in, the Danger Zone stocks, including reiterated ideas, averaged a 5% return in 2019 versus the S&P 500’s 11% gain, and outperformed as a short portfolio.