On Monday, we highlighted one potential trade: drone manufacturer AeroVironment (AVAV). AeroVironment’s history suggests the possibility of a big decline in a nervous market ahead of fiscal Q1 earnings. But it would seem like there should be many more such opportunities. This is a market that, to be blunt, has bid up a lot of garbage. Even for quality names, investors seem to have forgotten some of the lessons learned in the first few months of this year, let alone those imparted in, for example, 2007-2008.

Overlooked Alpha. A short candidate.