I do use the shorter's game every 6 months to increase the size of my holdings. However because I'm over 60 and my trading is done through an allocated pension fund I can do so without paying the taxman. For most of the retail and SMF investors the taxman limits the benefits of playing the game.
Remember the shorter's make money three ways. Selling high forcing the prices down, inter day plays and buying cheap on the way up. Who are the pigeons in this game? The retail & SMF investors who a scared into selling at lower than real value and buy late in too the next rally. The shorter's profits have to come from someone.
The two reason I post about the shorter's games.
Firstly hopefully the make the pigeons aware of the game. Fewer panic sellers and more educated buyers in the dip. The maybe these oscillations won't be as dramatic.
Secondly, The dampening effect on these biannual shorting games have on the real value of the stock. Which I revealed in my earlier post using the 50, 200 and 499 EMA's where TFC oscillations revolve around a two year flat 200 EMA. Go look at the 5 year charts for three of my other pet portfolio stocks , ACX , ALU & NAN and put in the 50 200 499 EMA's.
With these stocks all the EMA's are rising and the smaller oscillations revolve around the 50 EMA.
And yet TFC's business model is as good as each of the three. The effect of shorting undervalues the stock.
TFC Price at posting:
$1.48 Sentiment: Buy Disclosure: Held