RE:Talking about whipping up a buying frenzyIf that were the case you should be cautioning against buying the stock when it is $100, not when it is a bargain like this. Go away short.
CEO just dropped a cool million on shares. That's a vote of confidence if I have ever seen one.
There are lots of reasons that an insider may sell a stock, but typically only one reason they would buy - They think the stock is undervalued!
I would wish you luck on your short position but I hope you get burned badly, and after you do, I will sell a share or two and enjoy a very nice steak dinner and wine on you.
notwrong wrote: Yep, you had better believe it. It is going to the moon. Wow, $145 ! Just think how much money you can make, lol!
You may wonder why they want to whip up a buying frenzy. The reason is simple. This can make the price go a lot higher for a moment so that they can maximize their profits. Unfortunately, that will also trigger panic selloffs among retail investors when the pump-and-dump guys start dumping, a repeat of the previous panic selloffs that brought the price all the way down to $40. But if the buying frenzy does not happen, a panic selloff will be much less likely, since the number of retailers buying at a natural peak price would be a lot less. In this case, the price will simply move gradually and steadily according to normal market forces.
If you are in an accumulation mode, buy on a down day, watch or even sell a little on an up day. Don't unknowingly be a pawn to help the pump-and-dump guys to whip up a buying frenzy for them!