So, When you're bored on a Sunday morning, you start reading Scholastics annual reports, trying to figure out if this is a good time to short the stock.

I see in the 2007 report that 53% of SCHL revenue comes from Childrens Book Publishing (read that as Harry Potter for the most part).

The 2007 report doesn't include revenue from the last Potter book, so the 2008 report won't look terrible. Year ends in May. But watch out for 2009 revenue and earnings. Fiscal year runs from June 2008 - May 2009.

Stock currently trading north of $36. 3rd quarter earnings will be announced in late March.

Looks like a good time to start a long term short, legging in between now and mid-March.

Once the Potter revenue starts fading away from this company ($250 million a year??), and no other big blockbuster on the horizon, the stock will start a steady decline down.

I'm going short Tuesday 1000 shares for around $36. Hope to be short 5000 shares by earnings release a month from now.