GREY:ARGEF - Post by User
Comment by
morriconeon May 07, 2011 10:39pm
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Post# 18545492
RE: Shorts decrease again
RE: Shorts decrease againI think you're taking a very narrow viewpoint that shorts are an attack on the stock. It may very well be that the short positions were simply an insurance policy. You hold a large block of RGX and you don't want to sell, but you're nervous that in the short term the stock might sell off leaving you with heavy losses. You take a short position simply to protect yourself.
It could also be that you are in the process of selling your shares but this may take a while so you take out a short position to protect yourself at the current price and you close it out as you sell your shares.
Personally I don't consider short positions important at all to any stock unless they are a significantly large size in relation to the float. I think too many people get wound up over the short issue and wander off into la la land dreaming of conspiracies to keep a stock price down, the old "manipulation" nonsense.