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Do you think they really borrowed 90m shares in one go to short. If the reporting is accurate and this only happen two days ago it could take over a month to clear the selling , especially if they drop them like shorts have a habit of doing.
Out of interest, has anyone here known institutions or major holders go against a short attack like this to force them to buy back at a higher price? I know it’s a long shot, but I wondered if there has been a precedence as this seems incredibly risky from the short perspective
Jonny I know you’ve said you’re a new investor so this is no doubt particularly horrible for you. I absolutely despise shorts, largely because I’m jealous of the way they can manipulate a share price in their favour and with 100m shares that’s a lot of manipulating power. The big thing here is that JD is already down a lot and some institutions may see value in investing at these levels, equally there could be news which make causes a rise (e.g inflation dropping, ceasefire
In Middle East etc). The market indicators apparently suggest this is oversold too so you never know whether sentiment could go against them. Shorts have more difficulty manipulating bigger stocks than smaller ones, but it’s certainly not impossible.
If you don’t need the money soon, this is highly likely to return to highs at some point regardless of what they do. If there was buying pressure for some reason then it’s worth remembering they’ll need to buy 100m shares to give back to the people who lent them too so this could even push this higher than it would have gone otherwise.
Genuinely I feel for you, good luck and know that we’re in in together.
FF I’ve lost a little faith in your tips sorry after OGEN. Not because it hasn’t gone as you predicted, but because you’ve ignored me when I asked. I appreciate you are trying to help people and some of your other tips have been great, but it’s not a good sign when you don’t respond after making a strong prediction like that.
To counter the negativity here I’m going to make my own prediction that JD will rise tomorrow. I don’t use charts etc, but instead trust my logic.
The company reported a 10% loss in profit, but has seen a greater than 30% drop in its share price.
News also spread that it is set to receive a third of a billion in unexpected income from one of its investments this year, yet after the news spread the price dropped over 5%.
The company has extensive cash reserves, which, if interest rates are high could generate a strong return on capital or could be used as to purchase/combat debt heavy competitors.
The stock could be moving down for a multitude of reasons, but in my view, logic isn’t one of them.
All in my view, do your own research and not financial advice.
GLA 🤑