No I don't have a universal opinion it totally depends on the stock. Do NOT misquote me.
I totallydisapprove of shorting of MSB. Totally. THIS is the stock that we're talking about and have been talking about. Coordinated and systematic talking down of the stock is illegal.
I do however think naked shorting should be banned. TOTALLY. Because it distorts markets. And with Gamestop the hedge funds were so blatant and full of hubris they doubled down and shorted 160% *of the stock on issue! This is what's trapped them.
Regulation of white collar crime is pathetic.
Don't give me investing advice on buy and hold mate! That's a TOU offence right there. Rules mean nothing to an ex broker with a gun for hire.
I was and am contrasting MSB with Gamestop (GME) and explaining how shareholders could handle it better.
BUT if Cornerstone investors like Thorney lend out their shares for shorting for a guaranteed return of 17% maybe more, while they wait for MSB to fully mature they absolutely smash retail buy and hold investors at least on paper.
MSB shareholders could lobby Thorney and hold them to account. For some reason my calls to Thorney are bouncing. It must be a Telstra fault.
Thorney doesn't even list MSB as a major investment on their website now. Why is that? With friends like this who needs enemies?
By contrast to MSB and HC, Wallstreetbet subreddit members buying GME using a BUY AND HOLD strategy caused a short squeeze!
This caused a stellar run on the stock.
A few weaknesses though. Lured by free shares in other stocks, and I guess the name, they piled into the same (misnamed) broker, Robinhood.
The problem is that Robinhood has done the bidding of the hedge funds by halting buys on Gamestop. (It is also claimed that they have lent out shares for shorting but I think this is unlikely).
This is taking the sting out and giving the shorters the chance to cover some of their shorts they are trying to give the impression the rally is all over. But it's not just shorters who are exposed it's also options traders who are getting smashed. The extent of the problem is unknown since the extent of options and the extent of naked shorts is entirely unknown. *160% naked shorts is a guess. But it must be over 100% or shorts wouldn't be in such a dire situation.
My point stands that IF enough retail investors had done the buy and hold AND ignored the down rampers MSB would be in a very different place. The shorters would not have been able to holding down the shareprice there would be a shortage of stock to cover the shorts.
Good to see the little guys winning for a change.
Is this kind of retail pushback going to happen with MSB?
(20min delay)