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How to Short the 'Cult' Stocks

By Jim Cramer

 About this article:
 Cult stocks drive the purists crazy. Netflix and Priceline, both 52-week highs today, are the classic examples of the market's inability to measure classic cult stocks. The bears just keep putting 'em out on the basis of valuation and on how the competition certainly is about to destroy the stocks any minute now. I never, ever bet against one of these kinds of stocks at my hedge fund. Way too dangerous. It's simply impossible to know when the peak will come or when the competition will finally arrive, or if they will ever arrive. That's why my advice is, if you are going to short one of these, wait until they do stumble. When they do, you will certainly miss the first 10% or 20%. That's OK. These stocks are up on spikes but can hurt you if you time the short poorly, so it is a much...

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