Ever consider that a short has a limited downside the stock can only go to zero. The long position has far more upward potential - Let's take this stock and say before all the bad news it was into the $% but let's take $4.00 they haven't issued more stock but let's assume they can only get back to 75% of $4.00 that's $3.00 so from here it can go up $2.00 but only down 96c.
I don't short because the market can be irrational for a very long time. There is and was a company that had matched long to short stocks so it was BMW long and Tesla Short. I agreed with the thesis that it would be easier for BMW to produce an electric vehicle and inject it into its mix over the long term than it would be for Tesla to set up all the servicing and support as the vehicles grew in number. I still think that Tesla will find it hard to make a profit as the servicing and support grows. Then in comes the competition. Well, I still believe the theory that BMW will be a better investment than Tesla but for the past 2 years, it's not worked...
I think this company will survive but I also think management should have raised capital and diluted us rather than let this happen. I would much rather have had a share of say $2.60 and 30 More stock than where we are today - the risk of failure is high but I reckon DS has done their research and will make a lot of money. I, on the other hand, have doubled my holding so my average is around $2.00 and will be lucky yo get to breakeven.
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