It's purposely being held here. Buys have far outweighed the sells. Whilst they're not an exact science in themselves as some get erroenously reported, it's pretty clear something is going on.
Mr Tinky Winky claimed they were holding it at this SP until Q2 results and were doing so with the help of Cantor. As much as I don't like the guy it's holding this price and Cantor are the ones sat here on the ask.
1. It's not shorters who ruin a company anyway, it's bad management. Shorters take advantage of that in the same way longs take advantage of underpriced stocks with good management.
2. If a company is bust then the shares will have no value anyway (or some tiny nominal value). In reality, to close the position the shorts will settle the stock with some value. It's a kind of market after the event. Shares have 0p value technically but shorters are in a great position and can wait out for months - but like I said they usually just settle it all.
You can argue with the second point, but that's what happens in real life.
Shorters don't use their own shares. They borrow them so they can lower the SP and then buy them back so they can return them.
LFC (Great team by the way!) would you honestly expect any company that purposely shorts shares to go back to the person(s) they borrowed them from and say "oops, kinda ruined the company you were invested in, may have lost all your money but don't worry it'll be ok in the end". They'd never be able to do business again with that reputation. If so I'd love to witness that conversation.
And how was it a pointless post haha? The original poster suggested that shorters target well run companies, which is daft. Why would you short a good company that was reasonably valued???? Would be as stupid as going long a bad company that was overvalued.
"Shorters can only do this against companies that can handle it. No point in lowering the SP and watching a company go belly up resulting in a disaster for them too! So, by being shorted we know that we are invested in a company with safe hands."
Lol go tell that to Afren holders. Shorts made an absolute mint there. Why would it be a disaster for them to stay short during suspension/bust??? They just settle with the longs for some notional value...might be a longish process but hardy a disaster.
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