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Member Info for markson


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Member Since: Tue, 11th Oct 2011

Number of Share Chat Posts (all time): 238
Number of Share Chat Posts (last 30 days): 0

Last Posted: 10 May '14



10 May '14

Agree, the more ordinary investors are aware of the practice the better...
But for everyone interest it should be eradicated as it is plain and simple manipulation of the free market.
Allowing millions of non owned shares to be dumped into the market cannot be anything else but manipulation...
Good luck with your request and hopefully it is not one of the institutions lending out against their investors interests...
10 May '14

Shorts do not deliver pricing efficiency, that is delivered by normal supply and demand.
What they deliver is an artificial mechanism to manipulate the stock price down.
Why should the price be manipulated that goes against efficiency and how can it be efficient to allow stock borrowed on margin to be feed into the market...thats not efficiency but distortion....It is an argument that Hedge Funds use but does not stack up....

The Ramping and deramping is normal in any market thats bartering whether selling cars or shares or anything else...

Jack7.......you are right it presents and opportunity for a few in some cases..but ultimately it destroys the wealth of many more..and if allowed to grow and continue will eventually cause wider damage which would wipe out that opportunity quickly for a great many......It is no more than a small group of wealthy individuals using this method to distribute wealth from many investors to themselves.......That in itself is not good for society as generally the market when allowed to work properly distributes to many.....
10 May '14

You are right those businesses (investment banks) would have collapsed as they were allowed to use hedging derivatives in other works they were allowed to use ordinary investors money to buy on margin assets far greater than their net worth.....That is what caused their collapse and the consequential damage to the world markets...

Shorting is the same borrowing ordinary investors shares on margin...in other words they pay £1 and borrow £20+ worth of shares which are then feed into the market.....That can only have one effect if several weeks supply is fed into the market in a few days.....

This does not take into account feeding publicity which has the sole purpose of undermining any business...

This practice is increasing and will effect more any more until it undermines the market....which of cause is what it is suppose to do....

Businesses use the market to obtain investment to grow and that builds the wealth of the whole economy, it creates jobs etc......

Shorting does nothing but undermine this an therefore the purpose of the Market and I would go as far as saying it undermines Capitalism and the spread of economic benefit to those that wish to invest in the future....
10 May '14

Zabrana...you are right about easy credit...but guess what that also did.

"Borrow cost is the fee paid to a securities lender for borrowing the stock or other security. The cost of borrowing the stock is usually negligible compared to fees paid and interest accrued on the margin account - in 2002, 91% of stocks could be shorted for less than a 1% fee per annum, generally lower than interest rates earned on the margin account."

Easy to borrow large amounts of stock on margin and feed into the market creating a greater effect when combined with other factors.....Remember this stock is not owned by the Hedge Fund so like derivatives has a far greater impact than normal supply and demand.....

The real impact was of derivatives was the collapse of Baring Bank long before the last crash and yet the regulators allowed the practice to continue....

Easy credit i will grant you was one reason but the fuel was a cocktail of Shorts and derivatives.

Shorts most definitely were a contributing factor and will be if allowed to continue....IMO

Why should brokers that hold nominees shares be allowed to loan out stock that ordinary investors have bought but are not asked whether they agree for those shares to be loaned and sold against their own holdings....
10 May '14

We have seen the effects of this dubious practice here....
But the impact has been seen before on a much grander scale.
Like the Investment bankers who were largely unregulated befor the last financial collapse we now have the rise of the new manipulators of the Market and it will impact and be the cause of the next recession...

Short History.....

" Short sellers were blamed for the Wall Street Crash of 1929.[7] Regulations governing short selling were implemented in the United States in 1929 and in 1940.[citation needed] Political fallout from the 1929 crash led Congress to enact a law banning short sellers from selling shares during a downtick; this was known as the uptick rule, and this was in effect until July 3, 2007 when it was removed by the Securities and Exchange Commission (SEC Release No. 34-55970).[8] President Herbert Hoover condemned short sellers and even J. Edgar Hoover said he would investigate short sellers for their role in prolonging the Depression."

Regulators and politicians are without doubt asleep at the wheel as usual or worse have a vested interest which is counter to the interests of the Economy or investors.....

Notice the dated when shorting using borrowed stock was allowed in 2007 in a down market and the effect not long after....

Hedge Funds are at the route of this and will be at the route of the next crash....They pay little or no tax on their gains so society and all of us are hit twice by the practice of a few rich individuals taking advantage of our innocent/ naive politicians and regulators.....

The E-petition to ban shorting is at.....just in case you wish to and have not had your say....

http://epetitions.direct.gov.uk/petitions/62851
3 May '14

Whilst i sympathise with with your plight, to blame the MM's for the movement in the share price over the last 18 months is totally wrong....

They only respond to supply and demand on the whole to keep liquidity and the market going.

Investment performance is based on the financials and the management....Look at the financials, the market for commodities, the location and its stability, the performance of competitors in that market.....

Then look at whether the business has the resources to carry out its strategy.....

Then ask the question which part this is the MM responsible for and which part the investor is responsible for....

The Zulu principle has been mentioned a investment book by Jim Slater, none of the Investment principles and criteria mentioned in the book are met and never have been....

There is too much market manipulation on AIM but here the manipulator is the management not MM's and that is a clear distinction....But the investor must take responsibility also because click on the JLP Fundamental tab above and look at the financial history of the company, forget everything else the years of sustained losses highlight that this business needs funding for years ahead and that has to be funded by Investors or banks...

What other information suggests otherwise.....So the share price reflects this because the value has to be added by what the business generates and produces not the money the investor puts in.

MM's and the market for the shares is a reflection of this....fundamentals and the TA show one thing for a sustained period of decline, that will only stop when something changes in the business model or the management of the business it cannot sustain continuos losses and is facing fewer options strategically to fund its vision..

MM's are an excuse for the performance of the business, not the reason for the performance that IMO is down to the management, the business and also the investors....

One area the market is manipulated is allowing ordinary investors holdings to be loaned out to be sold back forcing the share price down....namely shorting.....the following e-petition is your chance to vote for this to be heard by the relevant Government Dept and if enough votes in Parliament itself....

http://epetitions.direct.gov.uk/departments/14
GLA
28 Apr '14

They are borrowing from Institutional Holding in companies....

pension fund, nominee accounts etc.....

What other shareholder would be in their right mind and lend their own shares to be sold into the market creating an artificial supply in excess of normal demand....

The argument that shorters use is that it increases liquidity to the market....I certainly have not seen any issue with QPP and investors not being able to buy and sell the companies share...this no argument....

The whole purpose of shorting a share is the destruction of shareholder and the businesses value period....

Shorting is a form of derivative.... Plain and simple to borrow stock the shorter pays a 5%apr approx and is supplied with in effect 20 times the amount in shares which they can then feed straight into the market....
Combine this with a Hedge fund like Roble SL being able to use the Front of GC then you have market manipulation.
What else can it be but manipulation and by distributing that information before it was released you also have a form of insider trading.......

You can whistle to the cow come home.....spin it what ever way you want......it still comes out as destructive manipulation of the market......

Similiar in all aspects to the route cause of the last recession....another derivative instrument in every thing but name...

Shorters and the uniformed will continue to defend it, but it is ordinary investors that will continue to loose and in the end it is retail investors money being distributed to large wealthy hedge funds and individuals for no effect or benefit to the society or the economy......

http://epetitions.direct.gov.uk/petitions/62851

make your voice heard, it takes only 10,000 votes to be sent to the relevant department and then that can be picked up by the press as a public interest story.....

Why should pension pots and other forms of investment be allowed to be lent out to be used to destroy value for the ultimate holders.....
25 Apr '14

Well, i thought it was....lol
25 Apr '14

http://epetitions.direct.gov.uk/petitions/62851

Infest not invest is what the spawn do a correction .....

Good night all
25 Apr '14

This Government regulatory bodies sit idly by while the spawn invest the markets, squeezing investment and life from the economy....
With the restrictions placed on Investment banks by regulation and public disgust controlling their access to other peoples money has spawned their off spring.... The hedge funds start up by ex employee and investment bankers, these new funds have one purpose to squeeze money out of the financial system set up the fund businesses namely the markets such as AIM....

Investment banks used the capital of ordinary savers in their respective bank to play the derivatives and other dubious financial instruments that led to the last crash for which society is still paying the price....

How do the spawn do their work and get access to other peoples capital, that is easy they borrow it in the form of loaned stock which is held in nominee accounts by so called respectable institutions that are now restricted from using their old methods but this Government and its regulators allow them to use ordinary investors shares to be sold into the market destroying the value of their holdings.....The loaning institutions earn a cool % on the loan while sitting at arms length while the spawn do their dirty work using any means.....

This is just the start for once the spawn multiplies and grows from the gains made it will strangulate investment and take every increasing underhand methods as the competitions between the spawn increases...

Examples of spawn.....Luis Robles (almost most certainly GC resident in the same location) Robles SL, Vlrum Kumar TT International ex UBS.....Geoff Oldfield Ennismore Fund Management ex Baring Bank.....

Why should shorting be banned because the spawn have found another vehicle to hide in and suck the blood out of the system while the regulators and politicians sleep....even Vince Cable

The only way this will be ended is when the regulators and Government wake from their slumber,, but they did not last time.....keep pumping the message out and just maybe they will...

Good luck QPP and all the investors here....


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