BDR 0.00% 6.5¢ beadell resources limited

Gold price, page-7395

  1. 9,056 Posts.
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    Yes and no as far as being counterproductive ucs. Let's just use BDR as an example. We will assume you are in for the long haul, want to hold for the next 12 months and are confident in the fundamentals of the company.

    Technical analysis and shorters tend to control a stock in the short term and can cause significant fluctuations in the stock price on a day to day basis but in general you could expect the fundamentals to really define the direction of a stock long term.

    So in the above case you might lend your BDR out for a fee (make some extra coin) and be comfortable with the day to day fluctuations. You know over time the fundamentals will guide BDR higher and if you're lucky at some point there will be an event that causes a short squeeze that sends your stock much higher than it might have gone naturally (or at least quicker), as a sort of recompense or neutralisation of any lag that may have occurred due to shorting.

    So over the more medium to long term you have received your fee from the shorters plus your return on the stock and you are happy. All in theory. Can't say it works like this for sure in the real world though lol
 
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Currently unlisted public company.

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