trent, Anything below $2.50 has to be a good buy into Paladin. If you look at how frequently PDN appears as having a large % of its stock shorted it is only a few and big volumes for relatively short periods.
and yes the market does lose confidence when they ban short selling because the market knows that it is only done short term and when there is fear and this makes the fear worse. I know and understand (I hope) all the theoretical arguments for and against .... added liquidity, balancing the up rampers, better valuations but IN PRACTICE short selling is done mostly by the big guys when they smell blood in the water or feel they can help create panic to their advantage.
Interestingly I read an article in todays telegraph with which I agree. http://www.dailytelegraph.com.au/short-selling-rioters/story-fn6e1lzz-1226114440509 the last paragraphs of which says:
"It becomes a fertile ground for pin-stripe rioters, people in business suits spreading rumours, causing the stocks of a particular bank to plunge because they can make a lot of money from that."
While shorting is seen to be just a mirror of upramping in practice in creates far more havoc!
PDN Price at posting:
$2.22 Sentiment: Buy Disclosure: Held
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