the release of bad news stories and increased shorting activity are coordinated. Do you think the shorters will attack unless there is a bad news story just came out?
The shorters know that the media will quickly look for a story to attribute to the cause of the down draft. They bank on the media to do this since they want the media and readers to give credence to the reasoning of the shorters articles. If the share price drops and the article has just appeared then the article must be true. Ipso Facto !
But these shorter reports are not true and it still costs the shorters more money each time they try to bring the price down. In fact they dig their own grave deeper each time.
Blackberry is executing. Z10 sales remain strong, Q10 sales are much more than expected. The R10 sales are gearing up for this summer. Profit margins are increasing as sales move from OS 7.1 sales to BB10 sales. BES 10 sales are gearing up in the corporate world and this will include some very lucrative service fees. Even the Secure portion of BES 10 will be available later this month to handle securing Android and Apple phones in corporations running BYOD shops. More and more of the main applications are being delivered on the BB10 platform.
The games shorters are playing are becoming less and less effective as the media and broader reading audience learns their tricks and as investors stop panicking and selling off into these attacks. Fewer stop losses are being placed which makes it all the harder and more expensive for the shorters to push down the price. The share price will bounce back more quickly now.
This is a game that can only end badly fro the shorts.
It's better to be out wishing you were in than in wishing you were out.
"Markets can remain irrational longer than you can remain solvent". - John Maynard Keynes
