Post by
sapiensunus on Feb 06, 2015 11:32am
When does short selling become manipulation?
“The recent financial crisis has focused the media and regulators on allegations of manipulative short selling in the stocks of financial services firms. The Securities and Exchange Commission (“SEC”), in addition to a range of regulatory responses, has made investigations into the possible manipulation of financial stocks through short selling schemes a top enforcement priority. Director of Enforcement Linda Thomsen has vowed to subject to “the full force of the law” anyone who engages in “abusive short selling, market manipulation, and false rumor mongering....Similarly, New York Attorney General Andrew Cuomo has compared short sellers in the current market turmoil to “looters after a hurricane,” and promised to intensify his own investigation of short selling abuses.”
Sourced from: www.klgates.com.
Remember that stockhouse has all kinds of posters… most of which care less for fellow investors and the company’s ability to manage itself for the long run (such an easy pun). Some of the posters are even paid for their one line “throw ins”.
Personally, I don’t see the need for responding with quotes because if you read the post you should not have to repeat it.
We all want to make money, some people like to go long and short – that game is very risky and better played through a long short fund manager if you so choose. Shorting is also not good for the market in general as it puts undue pressure on sometimes good companies. However, you can make money shorting companies or sectors that go through slumps (like the financial system in 08). Remember that people that are short have an agenda when they post. The agenda is to try to force the price lower. That always ends in a squeeze if the company is managed well (unlike Radio Shack, but that company was mismanaged for years like Eastman Kodak). On the other hand… some pumpers like to do the opposite and pump to flip.
I’m not going to tell anyone what to do… but there is nothing wrong with making helpful suggestions in an effort to assist fellow investors. Stockhouse would be much better on a platform that allows investors to collaborate constructively rather than destructively. We all know our effect on the market would be much stronger if we can pool our ideas and resources together. Maybe stockhouse should start providing investor assistance through automated trading tools and blogs that are actually savvy and informative. Anything is better than reading some useless one line post bash.
Just a thought.
GWH