Episode 31 - Short Selling MicroCap Stocks with Chris Irons, Quoth the Raven Research and GeoInvesting
For this episode of Planet MicroCap Podcast, I spoke with Chris Irons, Founder of Quoth the Raven Research and Equity Analyst & Senior Business Writer at GeoInvesting. I was introduced to Chris via Maj Soueidan from GeoInvesting.com and my guest for Episode 14. I wanted to discuss an investing style that depending on who talk to has both positive and negative connotations.
For those who don’t know, Short Selling, selling a stock short or having a short position in a stock, according to Investopedia, is defined as, “the sale of a security that is not owned by the seller, or that the seller has borrowed. Short selling is motivated by the belief that a security’s price will decline, enabling it to be bought back at a lower price to make a profit.”
There is a lot more nuance to short selling as will be evidenced in my interview. The goal for this episode to clearly define and understand what short selling is, how one can do it, why some investors sell stock short and how this applies to MicroCap stocks.
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In this episode, Chris and I discuss the following topics:
- Chris' background and how he got into MicroCap investing
- What does “Short Selling” mean?
- How do you sell a stock “short”?
- Why would he sell a stock short and what are the catalysts
- Difference between selling a MicroCap stock short vs. the large/mid cap stocks
- Advantages and disadvantages of selling a MicroCap stock short
- What short selling experience taught Chris the most, or what was the most memorable
- His advice for new MicroCap investors about short selling MicroCap stocks
- Some good resources for new MicroCap investors can use to learn more about short selling MicroCap stocks
You can follow Chris on Twitter @QTRResearch