sellers....21 Oct 2021 09:58
The market works because of the existence of buyers and sellers FACT. Now what has not been discussed is the use of Shorts by large institutional investors as a hedge..It is an essential part of the their investment strategy and this and Asos is a sector hedge. At just over 1% the amount of shorts is on the ranking at best a hedge not a short attack or any other dark force. To make money in the markets the basic strategy is to buy low and sell high. This is of course what both actors try to do as each thinks they are getting a best price when a trade happens.
So, if you think it is a bargain you buy and if you think it is at the best price you sell if you wish. It is not rocket science but most retail fail because they try to time the market, can't sit on a strategy of averaging and panic at any sign of a down turn. These boards are full of people claiming some special insights or guessing where the market goes. The basis of any investment case has to be where the company will be in the future not where it will be next week or tomorrow -pointless and costly and its called trading.
All companies are facing a supply crunch and inflationary pressures; the virus is once again raising it head and the government have just announced a plan B.... ?
So in general equities don't perform well in a higher inflationary environment - yet the markets still rise as they see it as transitory. Companies with debt may face big problems when, not if, interest rates rise. So companies with a strong brand, pricing power and little or no debt will survive and potentially thrive whereas margins may be squeezed in the short term the strongest will survive and flourish. Place your bets or don't it doesn't matter to me but I see this company as a long term survivor not a dead duck and the short interest is nothing but noise.
Sign In
Follow the stocks
