Herb Greenberg  |  On the Street

Herb Greenberg | On the Street

Share this post

Herb Greenberg  |  On the Street
Herb Greenberg | On the Street
Red Flag Alert – Sign of the Times
Copy link
Facebook
Email
Notes
More
Red Flag Alerts

Red Flag Alert – Sign of the Times

The paradoxical battleground known as Marathon Digital

Herb Greenberg's avatar
Herb Greenberg
Jan 04, 2024
∙ Paid
44

Share this post

Herb Greenberg  |  On the Street
Herb Greenberg | On the Street
Red Flag Alert – Sign of the Times
Copy link
Facebook
Email
Notes
More
11
7
Share
DALL-E via Bing

When I started Red Flag alerts, I made it clear the focus was stocks to avoid, not stocks to short. (Unless you’re a short seller, that is, who understands the risks. And even then...)

That said, the concept of easy- and hard-to-short stocks can provide a window into stocks that could be vulnerable to sharp run-ups – even if they don’t deserve it... and then, possibly falling off a cliff.

A great example is bitcoin miner Marathon Digital Holdings...

As one friend in my network put it...

No borrow available in January 2023 with a 100% cost to borrow.

Now millions available and no cost to borrow.

Quick Shorting Primer

Shorting involves borrowing shares, and then immediately selling them, with hopes if all goes right of buying them back at a lower price. If the “borrow,” as they call it, is tight, the so-called “stock loan fee” associated with finding and borrowing the stock can skyrocket. The fewer shares there are to borrow, the higher the cost... sometimes as high a 100% of the value of transaction.

The difference between now and then: Back then, bitcoin had crashed in the wake of the Sam Bankman-Fried fiasco, causing shorts to pile into all things crypto.

This post is for paid subscribers

Already a paid subscriber? Sign in
© 2025 Herb Greenberg
Privacy ∙ Terms ∙ Collection notice
Start writingGet the app
Substack is the home for great culture

Share

Copy link
Facebook
Email
Notes
More