Trading strategy if...

BeTheChange

Master Don Juan
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Based on some market data and research I've performed I know that Company X is doing quite badly and probably more so than most of the public would believe.

However this company is not publicly traded. How am I able to exploit this conclusion to my advantage?

Would going long on on one of Company X's competitors provide a similar result to shorting X's stock, which as I mentioned isn't possible due to it not being publicly traded.

I think that the state of company X's situation is more down to poor mangement and high debt levels rather than issues inherent in the industry it operates in so I believe its competitors would not be subject to the same level of poor performance.
 

guru1000

Master Don Juan
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You don't trade privates. You pitch the officers a deal "they can't refuse," and if you are lucky buy them outright for pennies or on consignment via an ex post facto "reward." That is assuming there is an upside for your time invested into the crap company.

You don't buy publicly-traded competitors, unless the subject bankrupting company owns a lions share of the market. But be careful not to venture so boldly that you are intertwined in some type of insider trading conspiracy.
 
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