How do I find stocks that are going straight to the basement in the short term?

no_nick: How do I find stocks that are going straight to the basement in the short term?
I trade options and I’m trying to create a system to find the very worst stocks to play with. The ones nobody wants that are doomed to get killed. How do you spot these terrible stocks? Where do you get information from?

Answers and Views:

Answer by Angie
Trying to find the terrible stocks is no more reliable than trying to find the most wonderful stocks. If we all had the answer to that methodology, we’d all be rich.

Answer by Prav
Let me know the answer when you find out. I know one thing though, you try to find this out BEFORE buying and not after.

Answer by anthony s
You could start you research with stocks that have P/E ratios of of 90 and up. These stocks are bound to drop in price. No stock can sustain that high of a ratio.

Answer by Michael K
It’s not easy. Some useful measures:
– very high price to sales ratios,
– very high or non-existent p.e. ratios,
– negative or slowing revenue growth,
– high debt to equity ratios, and
– ‘concept’ or ‘story’ stocks; when the story fades the stocks tend to collapse.
So, is it time to short SBUX?