Summary: Several Australian emerging healthcare companies have recently seen spectacular share price rises, followed by a crash. In the US, the tech and biotech sectors are showing signs they are heading towards a bubble. Locally, evidence is emerging of a second dot-com bubble.
Key take-out: When investors misprice the risks in some companies and stretched valuations come crashing back to earth, short sellers can profit.
Key beneficiaries: General investors. Category: Shares.