that's my point...
shorters borrow the shares from the institution
the institution then informs asic and websites like shortman make up these graphs
the point I am trying to make is that once that agreement between the shorter and the institution is in place, the shorter can decide when s/he likes to sell the stock and when to buy it.
the shorter could
sell the stock on the day or he could sell it in a month. Usually I would say the shorter will sell it on the day some bad news is announced like yesterday when MFG released the FUM report for Dec.
so when ASIC informs the market all we investors know is that x amount of the companies shares have been borrowed or returned. We don't know really when the shares were sold by the shorter.
It's important to know this because what I am trying to do is build a case that
shorting is exactly the same as pump and dump except in reverse.Instead of create rumours that will make a stock go up, shorters create rumours that will go down.
Instead of buy stocks to go up, shorters sell stocks to go down.
For the pump and dumper, when the stock goes up they sell before everyone else and for shorters once they have smashed down, they buy before everyone else.
what get's me is that the selling constitutes market manipulation because
when they sell in volume to establish a position they are in effect pushing the price down and if enough shorters do it, they can force the price down so much that it panics other investors to sell as well.this creates a
snowball effect which results in a stock's price being totally smashed, way beyond what it is actually worth.
I have read on this one shorting site
called falling knife that the price target for MFG is $14
So basically the fact that these guys come up with such a ridiculous price target means they know that they can do it and it should not be legal
(20min delay)