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How do we find out the long and short targets?

Companies that are suitable for long position generally need to have the following five positive characteristics.

• The company has a “moat” - ensuring a high barrier to entry • Management integrity and excellence - Ensure that shareholders' interests are above and will not be fraudulent • A large space for industry development - ensuring high growth potential for the company's business • Equity incentives are in place – ensuring that companies and investors are aligned with their interests and demands • The stock price is “seriously undervalued” – ensuring a higher margin of safety after buying

Conversely, for companies with the following negative characteristics, we will consider sell short

• Industry faces policy uncertainty, such as companies that rely heavily on government subsidies or access • The industry or company has a seemingly attractive concept, but the entry barriers to the business are low and the competitive landscape may deteriorate rapidly • The corporate governance structure is unreasonable, large shareholders may harm the interests of minority shareholders, or the financial statements are clearly fraudulent. • The stock price is seriously overvalued and deviates significantly from the reasonable valuation range


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The information, opinions and data published in this website may not be accurate or invalid due to changes in the situation or other factors after the release date, but Golden Pine does not guarantee the completeness, accuracy and timely updating of the information.

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