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Friends,

In Slothrop's ten years as an investor, he has never shorted a stock. Bad karma went the thinking. But today he did it. First Solar is the culprit. After a blow-out earnings quarter the PE was still 120! 120!!!!! How could this possibly be sustained? Under what circumstances would a company be able to meet such a lofty valuation? Slothrop's answer, after some serious head scratching, was none.

Question: this appears as such an easy free-money pick. As Peter Lynch wrote in One Up on Wall-Street, there's no single worse stock than the hottest one, and this firecracker is up some 600% in a very short time span. Yet we all know there is no such thing as free money. Yet why oh why are not more people shorting this thing? When things begin looking obvious is when Slothrop's monkey starts throwing banana peels. Where's the slip-up in my thinking?

S+M
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