Short and Distort Campaign Back in PlayOpinion:
There is a very distinctive pattern that when the company announces positive news, there is overwhelming amount of negative news to counter it. The plan is simple, instead of letting the market determine the fair price, the shorters are usually silent and allow for a rise in price and then sell into the high point in order to profit take during the rise. Then a relentless negative campaign begins in order for the shorters to buy again when the price drops. The cycle continues because there always is a “talking point” to counter the good news. For example, a positive NR comes out that they have a patent, the talking point “So what? There is no revenue” They know this is disingenuous because they also know the company is in negotiations and revenue will come. If a NR comes out of a sales contract, the talking point will come out “so where’s the money?” or “the revenue is peanuts?” The are well aware that sales campaigns will begin with a trickle and end with a flood. Rome wasn’t built in a day, neither was Amazon, Apple or Microsoft. I am not comparing NexOptic to these mega companies just pointing out that even the greatest IT companies took time to build up.
Now count the number of negative responses that has come out since the RG news release. Overwhelming, isn’t it? They are angry that he has put a monkey wrench into their current scheme and the price is not dropping as expected. In fact, they are fearful that stock will rise and that they sold too soon.
What they are doing is currently not illegal in Canada for the most part except in BC. That may
change as the Ontario Securities Commission is also reviewing this practice as more investors complain to the OSC and the Canadian Securities Administrators (Canada’s version of the SEC) https://www.securities-administrators.ca/
This is, however, illegal in the US.
Short and Distort Definition - Investopedia Short and distort is an
illegal trading scheme involving selling short the shares of a company and then spreading negative rumors in order to influence the stock price downward. ... Short and distort is a serious crime, and perpetrators can be charged with securities fraud and subject to fines and jail time.
People do have a right to criticize and complain, and usually say their piece and move on. When it is relentless, persistent and constant then it is legitimate to question their motives.