fridays foibles, page-55

For a hedge-fund to short a company there must have been a reason, rightly or wrongly, to start. Once it starts, I find it difficult to believe it does not manipulate the market. It can trigger margin calls which excacerbates the problem is no ready cash is available forcing more selling. This can spiral to the point of the company being in breach of certain convenants that trigger loan calls.

If you do not like a stock, do not buy it. If the fundementals dictate then supply and demand will cause the share price to rise and fall as it should. If you believe the company to be unsound, by all means short it, but via CFDs which does not influence the market (as far as my limited CFD knowledge goes).

I am sure there are pros and cons to shorting and I probably could never debate the issue as these are just the ramblings of a layman.

Good luck all.