Abnormally high P/E

Suspect companies with abnormally high P/E. It is best to stay away from such companies.

All it requires is a cabal with a PSU. Ask the PSU to buy at high prices each day, generating a trend and inviting the idiot who studies technical analysis and invests in the stock. These moves are pumping up the price of the stock. The owner can now ask for loan and put as collateral his high priced stock. At this point, the owner buys goods from China or Malaysia and sells it to make money. At this point the PSU starts dumping the stock looting the ordinary investor. When the stock price falls below a level, the owner or the PSU may again buy it. The cycle repeats next year and the year after. 

Hence, with no interest payment, one can take a loan and generate income out of thin air (and of course China)