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Saturday, 01/12/2008 4:36:02 PM

Saturday, January 12, 2008 4:36:02 PM

Post# of 10923
From the Yahoo board (Jan.12th) and worth posting here.
Author is traderathome. In light of the reduction of short interest and increase in call options, I think this post sums things up pretty well.
Good Luck!
-Fritz
===============================================================
I understand your frustration, which I read between the lines of your post. But there is a positive in all of this...

IMHO, subsequent to the BEAR move, the price is being controlled via the continued use by the STREET of the privilege of naked shorting. The STREET no longer seems to want to tank the pps, but restrain the pps, while they cover any shorts remaining from the BEAR move, and while they continue to use naked shorting to supply themselves with inexpensive shares to buy as they accumulate a long side position at these lows. (Phew! Long sentence.)

The concensus is that this in not a damaged company, but a company with damaged stock. The company does not have damaged fundamentals. But the stock is "damaged", meaning it is targeted by the STREET for manipulation. And in this case, that means manipulation to keep the pps down while any remaining BEAR move shorts are covered for profit,and while long side positions are accumulated at the lows, using naked shorts to feed themselves cheap shares to buy, and then squeezing real shares from capitulating shareholders to facilitate covering. Even is the remainder of covering happens at higher prices, the average price of the STREET's long side accumulation is still going to be very attractive when this takes off again.

And that is what the forward looking STREET always banks on.


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