What are we looking for?
Catalyst for revaluation
All caps
Deteriorating sales
Decaying balance sheet
Poor earnings quality
Deteriorating financial position
What do we think?
Flaws in bull thesis
Financial statement analysis
Competitive environment
Clarity to catalyst
Earnings will not hold
What is the market telling us?
Technical analysis
Overvalued stock
Overhead resistance
Poor relative strength
Acceptable risk/reward
Revaluation likely