Replies to post #2551 on New Energy Systems Group (fka NEWN)

[ChaTea]

OK, thanks for sharing your opinion.

Can you do me a favor? would you please explain to me why someone shorting a stock could kill the stock so effectively? I thought that in the case of someone deciding to short a stock, they'd have to borrow shares in order to go short. In other words, that means that they would not have a direct ability to cause a share's price to go down because they are just borrowing shares in the hope that the share price will go down. So, in the case of this stock, how do you think that the shorts are ruining the share price? If they are just borrowing the shares, and have no direct ability to determine a lower share price, how can they crush the share's price?

I always wondered how this could work, and was hoping for your feedback. Thanks.

[stills999]

Basically (my opinion) this is the shorts plan: It is very simple!!

1. Short a stock.

2. See if the price decline of the shorting causes additional panic selling and share price decline.

3. If yes, you are off to the races! Short more to induce more panic selling to make more $$$ on your short.

As long as folks are scared (as in this environment), this strategy will be employed as it is guarantteed $$$ for shorts -- someone will figure it out.

However, the important thing is if you believe in the fudamentals this will work out to the longs advantage eventually. If the price falls much more, I'll be certain to add to my position.

Fudamentals do matter!! Eventually, with extremely low share price, the company could use profits to buy back cheap shares. Later, once growth opportunities are exhuasted, a dividend could be divided amoung the fewer remaining shareholders at a very high yield... this is what CCME is doing!

Also as this sector proves itself, these short strategies will be less effective. I want to be long before then!