RE:RE:(Oct 13 BloomBerg) New Mandates For Short Sales You may be surprised about my view, but I do not agree with you.
I do not trade short myself due to uncapped loss potentials but the original goal of allowing these trades was to motivate trading firms to investigate and expose companies who were misleading their own investors (eg. Enron / Nortel).
One false claim that comes to mind is the Tesla story that Hedge Fund Managers were promoting (even on Stock Forums) that the warranty cost of the Tesla cars were understated as they were comparing the warranty cost to ICE vehicles. These geniuses did not take into consideration that an electric motor has far few parts than a combustion engine and are easier to work on. Of course the Telsa stock slumped for awhile until it came back and set new all time highs.
The concept of Shorting was good in theory but (like many things) a good concept was turned around into something ugly and has been exploited by the under-handed.
Hedge Funds with little to no morals seen an opportunity to accuse companies of things that are clearly false. Instead of companies being exposed for actual mis-deeds these Hedge-Funds are actually making up stories when no story actually exists.
I have followed a few companies now that were destroyed by false claims made by Hedge Funds and has cost many Average Joes their life savings and / or has crippled their retirement plans. I firmly believe that change is needed in the Hedge Fund industry and what the SEC is doing is a nice first step.
I would prefer to see the corrupt Hedge Funds go broke themselves but to also see their management teams and employees charged and imprisoned for a number of years. Of course, all trading and investing certificates removed and their careers in the world of finance ended. Honest Hedge Funds do serve a purpose to investors and deserve some level of respect. For better or worse the corrupt few are causing regulatory change to the industy which will result in higher costs to operate for those on the up and up.
The bright side to this sad reality we live in is that those who do proper research and remain patient can gather large amounts of shares at very low prices in companies that have been artificially supressed for the eventual uplift in Share Prices once the stock Breaks Out of the artificial suppression.
Tilray Brands currently has a Short-Seller Report out which appears to be full of baloney. The CEO himself addressed a number of the points raised in the report even before the report came to light. The good news, as I see it, is that the Hedge Fund that sponsored that report has to be beyond desperate to bring up topics that are so weak.
The Shorts are wrong, they know it, I know it, and I know they are under contract to B-U-Y.
Enjoy your weekend folks,
Q
dyodd