RE:RE:RE:RE:RE:RE:$1 in $10 of gross profitCaneIsAbel wrote: When shares are sold to a bank or a firm in exchange for investment capital. They absolutely can and do sell those shares short as a hedge depending on the company. Doing so can prove very costly as well should the share price rise significantly. Contrary what people believe, shorts can not decrease an SP. They can manipulate by holding a large amount of shares that they can sell triggering a retail shake out and then bank on their short positions. Happens all the time especially with a retail rich stock like TLRY. Wall Street called retail money dumb money in other words easy money. There's people like me that want to smarten retailers up. When a stock is heavily shorted like Tilray Brands, there will be no shortage of bearish thesis articles being written in droves. This is also part of the manipulation that takes place. Many "analysts" in their pockets. I'm not saying their isn't bad companies out there or ones that are shorted rightfully. I'm just saying Tilray Brands is not one of those companies that warrants the amount is shorting and manipulation taking place. As maerysk said himself TLRY differs only in name from Curaleaf. It faces the same issues it makes no difference if those issues are with 300 million people or 35 million people. The issues apply but I don't draw the same conclusions as the bearish thesis. I've seen this battle drawn up with the cola wars, tobacco, alcohol, Netflix, Amazon. Sometimes the regulations and things outside a companies control need to catch up.
Agreed, there are some things out of a companies control, there are however some things within the company control. A company can ensure the core busines is sustainable on itself (so that any money raised can be focused on growth). Share buy back programs are another way, GTII comes to mind, they have an in market buy backprogram in place, when jyou look at the SP action between GTII and TRUL you can see it has been effective. This of course requires that the core business be sound enough to support a buy back, as it would be counter productive to leverage the buy back program. Other sell restrictions can also be placed on shares to help slow the shorting. The current market situation is at a very critical point with several catalysts possibly in play. Although very exciting, these catalysts can also be treacherous for retail. Allow me to explain a little deeper, if we see a bull run and we all time highs everyone will be excited but how many will sell before we get to the top, and how many new investers will jump in at the top? It are these numbers the large short positions are interested in, as they know the price will drop back, it will then be the fundamentals of the business that will dertmine the SP when the dust settles. Lets keep in mind the lenders have already looked at the companies books before they handed over any money. Other points to consider about the plumbing behind all this the relationships between the lenders, custodians, and short positions. The common thought is the short squeeze will hurt the shorts, I would tend to agree that most retail shorts will get hurt, itis not for the inexperienced investor for sure. It is rare, that short funds lose, sometimes they do, but nothing that really impacts their business.