Jim Chanos on Shorting PC's, Herbalife, China & More: Interview
From market folly
January 23, 2013 - 2:38pm
Kynikos Associates' founder Jim Chanos recently sat down with Reuters to talk about why he's shorting the personal computer industry, China's debt load, and other topics. He started by talking about what he's looking for as a short seller:
Chanos points to reading SEC filings as a must, saying that "it's
amazing how many investors don't do that... it's a must. Those
documents exist for a reason." He looks for an exodus from a company, a
large amount of stock sales, companies impacted by technological change
(citing the internet as a perfect example).
Why Chanos Is Short PC's
Hewlett Packard (HPQ) is one of his largest shorts and Chanos says that the company has a lot of 'baggage' due to mistakes made by previous management (acquisitions etc). He also points to the company's lack of investing in research & development as they've missed mobile and just cuttin...
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