Yep I don't disagree about the shorting and therefore the large sums of money that would have been made by some people in the last few days of BIG's trading. However, in my opinion it's two separate issues.
First issue is the false accounting and incorrect cashflow reports that BIG was publishing to the market in the proceeding 12-24 months. Those accounts and cashflow reports were what sucked many of us into the 'BIG' story and we invested in something that essentially didn't exist.
Secondly there was the AFR articles and the details of the journalists investigating were obviously leaked to some people prior to publishing. Those people agressively shorted the stock and made a lot of money. So they made money from the unrevalaling of all the lies, but it doesn't change the fact that there were some pretty substantial lies in the first place. At some point it would have all come crashing down, short sellers or not.
BIG Price at posting:
$2.22 Sentiment: None Disclosure: Held
