GREY:XEBEQ - Post by User
Comment by
Ciaoon Feb 25, 2022 7:20pm
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Post# 34463566
RE:RE:Short trades - this explains the weakness YTD, maybe longer
RE:RE:Short trades - this explains the weakness YTD, maybe longerManipulating a stock is illegal. Short selling isn't, but naked short selling is. Not sure what they are doing here.
Don't know what you mean by a structural short. I thought that was used to describe the type of company being shorted rather than the mechanics of shorting.
It look's like a valuation short and dangerous now given it is trading below BV, has low P/S trailing and forward. Might have been a good idea when it was in double digits a year ago.
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A "Valuation Short" is a short idea based solely on valuation (fundamentals). This is presumably a "bad" idea and one of the quickest ways of loosing all your money.
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A "Structural Short" is said of shorting a company with a mature business model in decline, or shorting a stock that is becoming obsolete or significantly less competitive due to some major changes in the industry.
Hesiod07 wrote: There's a structural short, but there's also been almost daily short activity plus front running by selling inventory. The reason the price rebounds after around 3:30 is short covering, There is nothing illegal about this unless there's been phantom stock trading going on, and this can be investigated. The CFTC in the US is currently investigating illegal shorting in that market obviously because it has become prevalent.