Good points darby. Related to your thoughts, something that has always intrigued me about shorting is the following:
- to short a shorter must borrow (usually from a large fund, typically a super fund)
- the lending fund gets a small fee for the privilege
- the lender knows the purpose (to short) and is therefore presumably comfortable with this being a long term holder
So my question is, if a holder was unsure about the future surely they would sell themselves not loan out stock for someone else to sell.
In a perverse way, It seems to me that shorting could be seen as a good long term hold sign. The fund loaning the stock may even be happy for the shorter to take the risk driving down the price so they can add to their position at a lower price.
If there is anything of substance in the above then the big short on MMA coupled with no major holder bailing = very positive for future and therefore = very tempting to add more to my position on the dips.
MRM Price at posting:
70.0¢ Sentiment: Buy Disclosure: Held
