Alon,
Thanks for the post. I found this line of interest "Valuation shorts are a dicey proposition on intellectual grounds". I disagree--I think this formulation is more accurate "valuation shorts are a dicey proposition as a money-making strategy".

Intellectually, the bet may be defensible, but, a winning bet isn't based on merit as much as sensing what others will do. Overpaying for a house in a rising market can pay off while one is in a valuation bubble. The money-making bet is, when will others share the same sense of where things are.

What is considered "normal" plays a huge role in market perceptions, of course; I hope to foster a new norm of thinking about valuations--both intellectually and as a money-making strategy.

I'm working on a book to promote the idea of a performance-based capital structure for companies that raise venture capital via a public offering. I call it the "Fairshare Model" because it balances and aligns the interests of investors and employees. A slide deck with the high concept is under the Resources tab at www.fairsharemodel.com

I'll share a draft of my first chapter with anyone with interest. My email is [email protected]
Karl