DCN 1.88% 40.8¢ dacian gold limited

How many companies oversell their profit potential to fund...

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  1. 271 Posts.
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    How many companies oversell their profit potential to fund production (LYC is a good example).  If its over 50% then shorters will short all companies nearing production knowing that they will win in over 50% of their bets. So its not a question of winning or loosing against shorter's.  Its a matter of rechecking the fundamentals of your investment.  If they short a stock that you are 100% sure is a good investment then they have given you an opportunity to buy more shares at a lower price point. If you have made a mistake in your investment (or the fundamentals have changed) then its not really the shorter's fault.  Its yours. 

    So I really don't care If shorter's want to take the s/p down.  They eventually have to buy them all back.  And if I buy more shares at the lower price point then they will have to buy more shares at a higher price point.  Their loss, my gain.

    Cheers
 
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Currently unlisted public company.

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