Firstly sorry for my tardiness in responding. A few hectic days in the office! Unfortunately working in the industry means I can't 'buggerise' around on hotcopper at work.
The reason why Goldman Sachs getting out of SHV is a good thing:
- We are the little guys in this game (it really is just a game) and the big players (Gsachs and other hedge fund managers) are able to take specific action that manipulates the stock price no matter how well(or poorly) a company is doing. There is nothing we can do about this! We have to be aware of it and accept it (unless you want to campaign to government departements...good luck) and not fall for it!!!
The way they do this (in a very quick summation) is:
1. Widely spread info to make investors question how a company is running and to scare the market.
2. High Volume Shorting intended to push a company's stock price down.
3. As shorts keep increasing more erroneous news is spread designed to scare investors(even on this site!!!).
4. Every day shorts through computerised trading is used to push the price of a share down, eliminating the buyers.
If you want more info on this let me know
This is what has happened with Select Harvest!! As soon as Gscahs got involved large manipulation of this stock has occurred. It's not just them, but the smaller funds just follow the alpha. Now gsachs are starting to pack up their gold and say shalom, expect a lot more consistency with the share price.
We have a long way to go though!
http://www.shortman.com.au/stock?q=shv look at the chart...it's good but don't celebrate to soon, 4% is still a very high volume of shorting. As dudli said the other day people complain on threads about 2% affecting their stock of choice!!!
In my view when large manipulation of a stock you've invested in occurs you have two options:
1. Momentum trade (if you can't beat them join them)
2. Ride the wave. Buy more stock when the price gets pushed down and enjoy the climb up again. Obviously not everyone is in the financial position to choose.
Hope i've answered your question langers. Good Luck!
And GLTAH!!!!
$8 by the end of the month would be lovely! fingers crossed!
