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Touchstone Exploration Inc T.TXP

Alternate Symbol(s):  PBEGF

Touchstone Exploration Inc. is a Canada-based company, which is engaged in the business of petroleum and natural gas exploration, development, acquisition and production. The Company is active in onshore properties located in the Republic of Trinidad and Tobago. It operates Trinidad-based upstream petroleum and natural gas activities under state exploration and production licenses with the Trinidad and Tobago Ministry of Energy and Energy Industries (MEEI), Lease Operatorship Agreements (LOAs) with Heritage Petroleum Company Limited and private subsurface and surface leases with individual landowners. It is focused on onshore oil and natural gas properties located in southern Trinidad. With interests in approximately 145,000 net working interest acres of core exploration and development rights. Its core focus is on exploration and development on the Ortoire block and development production on its five onshore lease operatorship properties (CO-1, WD-4, WD-8, Fyzabad, and Balata East).


TSX:TXP - Post by User

Comment by Margin321on Aug 05, 2021 8:20am
120 Views
Post# 33653616

RE:RE:RE:London TXP shorting position update.......

RE:RE:RE:London TXP shorting position update.......Sometimes selling short is not trying to create a false market and drive shares down.

You buy a stock because you have reasons to think that it is undervalued and will continue do well and its shares will go up. Or maybe you expect some success that could be very positive but is not certain to happen.   Buying it doesn't not necessarily make it go up. However the share price can be "pumped' and artificially inflated by those who hope to dump it later to make a quick profit.

Similarly you sell a stock because you have reasons to think it is overvalued and will go down. Or because you think that some anticipated success is not going to pan out. Selling the shares does not necessarily make it go down. However concerted or coordinated selling coupled with trashing of the company can artificially drive it done so those actors can buy it much lower and make a quick profit. 

Selling shares that are overvalued allows you to profit if that is an accurate assessment and the shares return to a more reasonable valuation. You will also profit if the company has unanticipated bad news (or fails to achieve anticipated good news) and that outcome negatively alters their prospects. 

Selling shares also serves a useful purpose as an antidote to the "pump and dump scenario" described above, by putting a damper on it.


So in general buying and selling (even short selling)  of shares both contribute to an efficient market and help prevent excesses in either direction. At  least that is the theory.  If it was as simple as you describe (creating a false market and pushing share price down) they would just eliminate it.
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