IMO there is two reasons to short a stock both involve someone stealing other peoples money.
1. If they feel a stock has lost its momentum but a confident in time it will pick back up they will short driving down the price to gain a lower entry with les risk. Unfortunately in the meantime retail investors get fleeced of their holding with a SP that is manufactured.
2. If they were two damn lazy to take the risk on the stock in the first place and now realise they have lost out on a valuable stock. So they would carry out this shorting to again gain a lower entry price. Same scenario. Unfortunately in the meantime retail investors get fleeced of their holding with a SP that is manufactured.
The other reason is the stock is no good and they know it.
I doubt this though.
The stock has to be given back at some stage!!
Plus if they want more they will be buying more than the loaned stock.
While the stock is not expecting any news makes it ideal stock to carry out this exercise.
It is not the only one.
I am still in with our production ramping up and pricing improving looking forward to the next couple of quarterlies. Best of luck all.
ORE Price at posting:
$3.42 Sentiment: Hold Disclosure: Held
