what the gentleman on the post has explained is a simple bear strategy & it is legal as shorting is legal for as long as the person who shorts has the stocks to short it!!
the rule of the market is simple:
even there's enough buying power to lift up or enough selling power to pull down!!
as much as you & me may think that it is unfair to have someone of the size of our broker pushing our SP down, I would look back & say whatever is sold today must be bought back at some stage AT LOWER PRICE for someone to make money!!
this is what shorting is about....sell higher & buy lower.
it is logical from a market equilibrium point of view that since there isn't enought buyers then sellers will take advantage of any stock, same as when sellers disappear when buyers take control.
the principle that the shorting organisation is much bigger in size than average investor & that their size gives them an advantage & more control over any exact stock is wrong!!
the bigger the size, the higher the risk & those who short any stock carry a lot of risk that is in ratio with their invested captial!!
from fairness point of view, a very popular stock SHOULD HAVE enough buyers to DISATTRACT any shorters or make shorting much harder process!!
so we have to agree that thoes big shorting organisations are here in AAR because we had a WEAK buying power at some stage & they took advantage of that situation!!
our broker that keeps shorting AAR keeps hoping that someone will give up & will sell. therefore, no money will be made & SP will keep falling until someone gives up & sells!!
the lower we go the LOWER the chances of recovery that any shorting entity has becuase the lower the price the LESS ATTRACTIVE the selling idea will be to any of the shareholders & it makes the broker in a position that they did succeed to push down the stock but no one wants to sell the stocks back to them!!
IF YOU HAVE THE BUYING POWER, the only way you stop these shorting brokers is that you WAIT FOR THEM to succeed or at least get the CLEAR impression that they succeeded & .......... in 1 second, they realise that their job of buying back those shorted shares is much harder becuase you wiped them off at a very low price that recovery becomes almost impossible & only way for them recover is to go lower & they know that if they go much lower in a hope to recover or scare more holder that there's a sleeping monster called bargain hunters who will push back the stocks up again & their job of buying back those sold shares is much much much harder now!!!
I had fun playing up some shorting brokers before & it all works perfectly if they start to feel safe that a certain stock is DEFENITELY going lower!!!
you want a proof: why don't we have any sells below 2.9c??? because shorting broker finds it very hard already recovering those shares sold on mid 3c & last thing they want is to offer more sells on LOWER & I or you buy these shares then their job of recovery gets even harder & harder!!!
no volume in AAR if no sells & no logical buys & they hate volume to dry because they need sellers to stay tuned TO BE ABLE TO GET SCARED & SELL AT SOME STAGE!!!
there are 2 time factors here, time is passing slowly toward feysville & we've just had a broker's trade show!!
if our shorting broker shows any shares for sale say on mid 2c then any crazy man can go & buy his shares & profits gets really impossible to achieve since there will be no sellers now on 2c (to be able to make money).....AS MUCH AS THERE WERE NO SELLINGS ON MID 3C!!
so it is a waiting game, whoever gets scared of the other wins & we're already playing on the edges of the bargain levels.....if our shorting broker touches these bargain levels deeply then they know that the bargain hunters are proffessionals & our brokres WOULD NOT WANT TO WAKE UP THE BARGAIN HUNTERS becuase losses start to appear then!!
UNLESS................................ Waking up the bargain hunters was the whole idea at the first place !!!
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Cheers,
AAR Price at posting:
23.0¢ Sentiment: Buy Disclosure: Held
(20min delay)