FBR 2.86% 3.4¢ fbr ltd

FBR General Discussion, page-7098

  1. 1,707 Posts.
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    In my opinion, everyone seems to have it wrong on shorting.
    Shorting is where someone who believes the price will fall, borrows the share and sells it in the market now.
    To close out their position, they will need to buy the share back at a future date to deliver the purchased share back to the lender of the share.
    So, logically, it means all the selling pleasure on a company now from current shorting transactions means guaranteed buying pleasure for the same shares at some future date.
    Another key difference is that long holders can hold onto their shares if they expect the price to eventually increase, indefinitely if need be.
    Shorter's are at a strategic disadvantage because they are obligated to buy the stock back at a future price. As/if the price increase, margin loans are called in and shorter's must buy back even if they don't want to.
    So I actually pitty short sellers because they are playing a losers game.
    Not only are they forced into a future action to buy back shares at a future date, it also offers them only limited upside and unlimited downside.

    So if I had the choice of investing in a stock with a high short interest or a low short interest, ceteris paribus, the stock with the high short interest is actually more attractive.
    Simply because a high short interest now needs to be closed at a future date leading to pent up demand/buying at future dates.

    Let's all spare a thought for the poor shorter putting his/her valuable hard earned money into a losing game with the odds significantly stacked against you.
    Investing is about stacking the odds in your favour not about playing a game where the odds are stacked against you.
    Shorters should face the fact that they are gambling and may be better served just going to the nearest casino for the entertainment value.

    Not investment advice. DYOR, etc etc.



 
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Last
3.4¢
Change
-0.001(2.86%)
Mkt cap ! $162.8M
Open High Low Value Volume
3.6¢ 3.7¢ 3.4¢ $362.6K 10.28M

Buyers (Bids)

No. Vol. Price($)
17 2842250 3.4¢
 

Sellers (Offers)

Price($) Vol. No.
3.5¢ 203529 2
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Last trade - 16.10pm 27/08/2024 (20 minute delay) ?
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