RE:RE:Quality of Reliq's OfferingIt's definitely hard to be a shorter of small company stock. The long term odds are more in favour of the longs.
Shorters can hit a whole lot of singles, but their upside is usually limited to a 100% gain, which they might get occasionally. Of course, the downside is theoretically unlimited, so shorters usually don't commit large sums of money to any one short position, just in case they have to exit quickly. There are exceptions, of course, but these are usually limited to larger investment groups. Those exceptions are not happening here; the TOTAL short interest as of the latest reporting date was only 652k shares, which is peanuts.
For a long, the most they can lose is 100% of their investment; whereas, the upside is theoretically unlimited. When I first started investing, I kept my investments quite small, but still, the power of large upside returns led to some spectacular successes, including about a dozen and a half multibaggers. Five of those were higher than 10 baggers and one was an 85 bagger. It would take 6 consecutive short gains of 50%, where each time the shorter reinvested the entire short proceeds (used as collateral) in the immediately succeeding short position, to equal one 10 bagger. (Forget about an 85 bagger.) As I mentioned, a typical shorter wouldn't reinvest the entire net proceeds from a series of wins in the immediately succeeding short to get that return. The risk of one catastrophic failure would be too great.
It's no wonder that, with so much risk, a shorter might try to put his/her hand on the scale. Examples of this are on this very board, where posters have claimed, without evidence, that the former CEO is probably selling her shares and that you could never trust a single word that comes out of her mouth. They'll also try to post numerous times so as to bury legitimate counter arguments. Of course, these are all garbage posts, but the bashers can't seem to help themselves. Oh ya, they also love to issue reports, which ofttimes are also garbage.
There is one additional and very important thing which adds to the risk for shorters. Occasionally, companies will announce something breathtakingly positive or even transformational. This can be the death knell for a shorter.
Anyway, Whynottoday, I'm going to follow Peggy123's sage advice and use the ignore function of this website. My general policy is to suffer fools, but not for an extended period of time.
Farewell right back at you...
Whynottoday wrote: Investor22.....You should save your breath as you are on the wrong side of the trade. I could care less about Cognizant. I have zero emotion either way regarding this stock. I am only interested in making money!!!
Sometime next week I will be covering my short for a huge profit and gone. You will still be here crossing your fingers. Bottom line, the MGT of this company sucks and the proof is the shre price. The market got it right, and you didn't
Farewell....