One thing I've learned about shorting is that shorting already-battered stocks can sometimes work out well, since they are battered for a reason (as opposed to shorting higher-fliers, which is always more tempting).
Take the example of Charming Shoppes, which owns several retailers – – notably, Lane Bryant, which provides clothes for "women" (translation: really, really large women). This is the kind of stock that could go spiraling down into penny-land.
