Insiders vs. Shorts, Plus Valuation By Tim Melvin About this article: We are now into the third week of football season here in the U.S. I am, as readers may know, an avid sports fan, and this naturally extends to the gridiron. I love to spend the weekend watching college ball on Saturday and the pros on Sunday and Monday. I love a good contest. This extends to the stock market, as well, and has provided me with a screen that has turned up some explosive winners over the years. First, as always, I start with valuation. I never deviate from valuation and margin of safety first, no matter what other inputs I may use to find stocks. The first part of this screen is stocks that sell below tangible book value. To see a contest emerge, I then screen for insider ownership at high levels combined with a high short ratio. The short-sellers think the stock... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200. More Stories From RealMoney Durable Goods Up Move Down the Tech Food Chain Jobless Claims Still High Bulls' Tenacity Is the Big Question Mark Should You Buy It? Pharmaceutical Product Development Bad News Trumps All Support for Banks Holds, For Now Bummer, Yields Are on the Rise Money on the Line Makes a Big Difference Structured Products: Unsafe at Any Price MORE STORIES FROM REALMONEY

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