Interesting RB post in case anyone missed it.
: Haze1001 $$$
Reply To: None Monday, 25 Dec 2000 at 5:23 AM EST
Post # of 16856
The simple truth is that shorts always attack when the momentum has played out of small cap's price spike. Two recent examples in my portfolio are XYBR & CHCS. XYBR gets hammered by Bloombergs *every* time positive news comes out. XYBR *got* its Naz listing, yet Bloombergs hammered them and they didn't enjoy any appreciation. (Hope that makes SEVU owners feel better about the listing). This has happened the last three times XYBR has good news, Bloombergs trots out some blather.
Another is CHCS. They had shot from $8 to $40, a poster came on Yahoo to question accounting practices for the first time & not long after that The Street ran an article questioning the companies Same Store Sales calculations on the basis of statements made by the authors short friends (yes, he actually admitted that his source was friends of his who were short). That company dived into the $20s and hasn't completely recovered.
Point being, these guys, scum they may be, are just part of the landscape. They aren't looking for companies which are dishonest or attempting to provide a service. They target a company which has some momentum but the sales are still a year or two away. I suspect they also look for companies with a large retail investor base which they can stampede.
They wait until a run up's momentum plays out and then get some scum, sometimes even with credible organizations, to float deceptive rumors and half truths. The three times I've seen it in my portfolio, it always works.
Be grateful that Sevu's antagonist is so obviously not credible compared to the two sources who attacked XYBR & CHCS.
