GREY:WFREF - Post by User
Post by
VentureCapital3on Mar 27, 2015 1:35pm
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Post# 23569733
shorting
shortingI think shorting has is place to help the market to be more efficient. Otherwise, there is a bias on the buy side since only stockholders would be able to sell and everyone would be able to buy. Shortsellers will not destroy LRE. They may influence LRE sp (probably not so much, what is the current short sell ratio? for LRE) but at the end of the day LRE will perform well if the business is doing well and expectations are great. In the oposite, LRE will not perform well. It is a false excuse for poor performance. Actualy, if someone really think LRE sp is low because of some bad shortsellers, he shoud be glad to buy some LRE at a better price. When someone buy an asset, it is because he think this asset is cheap and it will increase in value by time. When you sell short an asset, it is because you think it is overvalued and it will decrease in value. The are a multitude of assets to buy or to sell... so why someone would decide to sell LRE to manipulate the sp and to run with a strong wind in is face??? If shorters thought LRE was cheap, they would buy LRE and have the wind on their back. It is much easier... is it not? Speculators move with the trend not again the trend...