If The CFO Says He Feels ‘Fantastic,’ Sell Short

A study set to appear soon in the Journal of Accounting Research asks whether deceptive chief executives and chief financial officers give themselves away by the language they use in the course of their conference calls. David F. Larcker and Anastasia Zakolyukina, both of Stanford University, Graduate School of Business, have developed prediction models (though still rather…

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Long Toilet Paper / Short Equities

Panic is an overwhelming feeling of fear that can dominate our decision making.  It typically begins with a significant and sudden change in circumstance.  The outbreak of coronavirus has provided numerous examples of decisions that are seemingly fuelled by stress and uncertainty; from the bizarre stockpiling of toilet paper to the dramatic daily moves in…

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