The Jailhouse

[Bird of Prey]

Utter hogwash...


Barring outright manipulation (which is wrong no matter who does it) the opposite is true. The shorter is selling (and driving down the price) when everyone is buying, and buying (and driving up the price) when everyone else is selling. In the case of the real garbage stocks, the shorter is the entire buyer's market when everyone is dumping their stock for their 99.9% tax loss.


Let's see...

Buyer A buys at $1.50
Short Sell B sells short at same price.
Short sales drive stock price down to $0.05
Buyer A sells.
Short Seller B buys to cover.

Buyer A *LOST* $1.45
Short seller B *profited* $1.45

It doesn't take a rocket scientist to figure out *WHERE* Short Seller B's *PROFIT* came from!

Regardless of rationalizations of short sellers (We ARE the market when the stock/market bottoms!) their profit is generated at the expense of longs. Simply providing the longs with someone to close out a position with is little consolation for the money often lost. That many shorts choose this time to literally and insult to injury is unconscionable.
This is the primary reason shorts and their supporting cast are so often vilified. The hatred screams loudest when, in the rare event of a short squeeze, longs can carry the return abuse to extremes that pale the worst dished out by shorts.

I agree that shorting has significant risks, and that one should heed the professional shorts when considering a purchase (or sale). I would hope that my research has been as good as many shorts claim theirs is.
Also, since technically, one is not supposed to be able to short pennies and microcaps legally here in the US in general, it would seem to me that anyone shorting these issues is likely involved in some kind of manipulation (and we may all be surprised at how pervasive it really is).

I am glad to read that you take no delight in the trash talk. It is truly a shame when good research loses credibility due to the verbal excesses of the researcher.

In closing,

You said I prefer to do my gambling in a casino. The drinks are free, and the food is better.

I will grant you the price of drinks, but you have no idea how good a cook I am!

Have a good day!

The Bird of Prey