Banter and General Comments, page-4320

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GCar

1,696 Posts.

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08/03/19

18:19

Post #: 37703311
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Originally posted by GCar ↑

I guess as long as the average buying price ends up being less than the average sell (shorting) price, then they are ahead.
The fact that extra shares (of other holders) will be forcibly sold as the price drops, means they can can get ahead - and especially so if they are aware of the volumes that will become available via stop losses and margin calls.
Like I said, if I knew that 1m shares would become available for sale (stop losses and margin calls) at $2, I would certainly short up to 1m shares to get the price to $2, then I can simply buy the shares that are forced onto the market and be ahead. Easy! Sounds like a scam to me.

And if 2m shares will become available (at $2 or in some range of say $1.80-2.00) and it only costs me 1m shares to short it to there, then why not just buy the additional 1m shares for cheap and ride them back up out of the artificially deflated share price? Of course you would.
This is the strategy as far as I can tell.
And it's legal..?

With so much money and shorts available to them, we can't fight it. The only way out is to bail or wait it out, if you believe in the fundamentals and that the fair value of the company is (or more appropriately: will be) higher at some point in the future. GXY tick.

...perhaps they start to dig a hole when there are several of them fighting over the same shares?!?!
Then can't cover... Then panic buy to get out.. Hence short squeeze...

Hmmmm... Legal games for the rich and powerful....?

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Oh, and add an orchestrated fear campaign of bs about oversupply and collapsing prices, and get more retailers to voluntarily hand over their shares as well, as the "prophecy is fulfilled" (or at least it looks like it) as the share price (across the sector) starts to cop a flogging....
"Look, they were right, all the stocks are dropping"!! Better get out!

Legal, apparently!

GXY Price at posting: $2.07 Sentiment: Buy Disclosure: Held
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Banter and General Comments, page-4320

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