In the case of Equitable Group, the company is in the high-risk business of alternative mortgage lending, which may command an above-average ROE, but when things go wrong, they really go wrong, as we witnessed early last year when Home Capital Group Inc. ( TSX:HCG ) imploded, bringing the broader basket of alternative lenders down with it. Unlike fellow alternative lender Home Capital, however, Equitable Group doesn't have the comfort of knowing that Warren Buffett may be there for a bailout should another liquidity crisis happen. Add the fact that short sellers like Marc Cohodes are trying to bring the stock down, and you have a formula for a potential disaster that could suddenly blow up in your portfolio, leaving you with huge losses should you sell on a sudden dip. When it comes to the company's outlook, management acknowledged there will be "significant uncertainty," which investors are clearly not a fan of.