Alon,

Great article! I particularly like the Einhorn comment, "twice a silly price is not twice as silly, it's just silly." The market get it wrong for far longer than you can remain solvent.

I am not sure if the sample size is large enough to dissect this any further but I've been interested in two related items.

1. If you overlay an element of technical analysis to identify when the market is starting question the valuation, do the results change? (i.e., if you only short once there is a cross below the 50 day MA, etc.)

2. If you go long a corresponding position in either an industry index or market index and net the gain/loss, what do the results look like?

Regards,
Neal