Higher prices in reach: keep the shorts on a short leashIf you believe in R-107 and you’re holding CLAS shares for the long haul, brace yourself for an increase in the short-sellers’ games, which typically kick into high gear, after a reverse split takes place. For anyone new to investing or unfamiliar with shorting, short sellers bet against the success of a company, and profit from a declining stock price; they are the complete opposite of long (true) investors.
Seasoned investors see this all the time -- shorts relentlessly bash companies and belittle and manipulate investors on forums in an attempt to instill fear and get the paper hands (weak) to sell, which can push the SP down. The ultimate goal of short sellers is to bash companies into bankruptcy, in an unscrupulous attempt to make the most money possible; however, they stand to lose an infinite amount of money, if the stock price rises.
We’re in an unprecedented time. This is a new age, where fed-up investors are coming together in droves, mainly to fight short-selling bullies more than ever before. Maybe you’re familiar with the growing meme-stock culture. It’s a history-making movement where determined investors buy and hold as many shares as possible in struggling companies (like GameStop and AMC Entertainment) that have a high short interest. Basically, by banding together and holding a majority of the outstanding shares, diamond-handed (strong) investors push the price up, causing a short squeeze, in which the bashers have to cover their positions at a loss.
The fewer shares outstanding, the easier it is for long retail investors like you and me to own a majority of them, which is a perk of a reverse split. If you’re long on CLAS, all you have to do to beat short sellers -- and allow the stock price to eventually grow as it should -- is to continue to buy shares, as wanted, hold strong and refrain from selling in unwarranted fear. It really is that simple.
We’re also in a time where we have more new investors in the public market than ever before, so as longs, we should spread helpful information, here on the SH board and on other Claritas stock forums; knowledge is power. Good luck to all long investors.