RE:Short article on Weed stocks on SA Obviously some short sellers needs courses on Technical Analysis! Shorts on ACB have been wrong for years and it was a losing position.
Look at this November 2016 short seller. Same type of flawed "fundamental" analysis trying to "nail jello on the wall". Anonymous author get paid $35 and plenty of them do it for market manipulation.
https://seekingalpha.com/article/4020774-aurora-cannabis-overvalued-misleading-management-team-short Time and time again, fundamental based shorts get whacked because they are convinced their fundamental thesis is sound when it's not. Fundamentals on this stock don't work. As soon as the thesis locks in production and consumption in Canada with quasi estimates, POP, world markets open up. Expect a news release from Aurora in regards to expanding world makrets like Australia for example. Just based on what is being observed on the trading tape. Large investment banks have been seen accumulating ACB in the $7 range for a reason. These high performance banks don't "speculate" based on flawed thesis.
The november 2016 short seller is underwater. ACB was trading at $2. Had he shorted $10K at that time, he would have lost $75K by January 2018's margin call since shorts work on margin to cover future loses which are unlimited. Much like this new short seller shorting at $7-8, it makes no sense. The rewards/risks are not there.
I'll be the first to say that I would short ACB on hyped euphoria fueled overbought. But right now, it's the time to remain in cash or long depending on whether you are risk adverse or not. Shorting at $7 or $8 is not where the money is made.
I view this self-serving short biased article as a last ditch effort by a market manipulating short seller to pick shares up in the mid to low $7s. Unlike trading short sellers, these fundamental based short sellers likely won't be going long and if they do, they will produce SeekingAlpha bullish articles under a different anonymous name.
The SEC has come down hard on SA and authors for market manipulation and I personally feel that readers should view SeekingAlpha as a powerful avenue to pump or bash stocks and sectors. That's if you into that typpe of illegal and unethical mode of operation. I prefer to sleep well at night. One of the reasons I stopped writting for them is I think these articles have a potential to "move the markets" at least short term. Longer term they are a "bump" on the road that get corrected very fast.