Australia's largest stock trading and investment forum Australia's #1 stock forum

Shorting should be liked, not loathed, page-5

First 5 Last

Share
Profile

Follow
aimone

53,880 Posts.

60

11/06/14

17:52

Post #: 13511944
Share

Originally posted by madamswer ↑

On many threads, anti-shorter rants can be heard being blamed for share price woes.

Me, I take a diametrically opposite view: last month’s shorter is today’s buyer when they move to cover their short positions.

Take RMD, for example: over the 12 months to May 2014, net short positions in the stock rose by around 110m shares (out of a total number of issued shares of 1.4bn, so around 7.5% of the total issued capital).
Over the past few weeks, shorters have been net buyers of around 44m shares to close out their positions.

The result has been an 19% increase in RMD’s share price.

The point being made is that shorters ultimately become buyers of stock.

The reason I like shorters is that they play a very important role in getting overvalued shares return to their point valuation equilibrium (and often below it, which creates opportunities for discerning buyers).

Which is what happened to RMD: the short-selling of the past 12 months created a fantastic buying opportunity in RMD in the earlier part of this year.

Shorters provide a valuable price discovery service to me.

Long Live The Shorters.
Viva The Shorters, Viva!

Expand

yea,

using bots to short / hedge your holding of currencies, interest rates, shares and the like,

is one of the safest and more profitable trades these days!

a no brainer!!

an example of hedged gold:

http://www.bloomberg.com/quote/FKICOMG:MP/chart

Last edited by aimone: 11/06/14
Upvote

0 Great analysis

Reply

Top Stories

SER

Strategic Energy extends its QLD copper-gold frontier with Diamantina acquisition

DRO

History repeats for DroneShield investors but carnage so far subdued

Listen: HotCopper Wire Podcast 018 – Potatoes, TACOs, and the $120M helicopter heist

HotCopper Highlights: Trigg; Droneshield; Lumos & more

AII

A new NASDAQ listing for a key player in the global critical minerals space

PSC

Prospect's Mumbezhi Project puts it at the middle of copper's megatrend. And FQM just bought in

SYR

Syrah jumps +19% as graphite tariff threat spurs optimism down under

BDM

Burgundy plunges -20% after turning to layoffs to navigate record-low diamond prices

STN

Saturn brings up seventh straight Apollo Hill upgrade on 'impressive' 300-hole drill run

Week 29 Wrap: ASX hits new all time high of 8,766pts ahead of Aug 1

First 5 Last

Shorting should be liked, not loathed, page-5

Strategic Energy extends its QLD copper-gold frontier with Diamantina acquisition

History repeats for DroneShield investors but carnage so far subdued

Listen: HotCopper Wire Podcast 018 – Potatoes, TACOs, and the $120M helicopter heist

HotCopper Highlights: Trigg; Droneshield; Lumos & more

A new NASDAQ listing for a key player in the global critical minerals space

Prospect's Mumbezhi Project puts it at the middle of copper's megatrend. And FQM just bought in

Syrah jumps +19% as graphite tariff threat spurs optimism down under

Burgundy plunges -20% after turning to layoffs to navigate record-low diamond prices

Saturn brings up seventh straight Apollo Hill upgrade on 'impressive' 300-hole drill run

Week 29 Wrap: ASX hits new all time high of 8,766pts ahead of Aug 1

Featured News

Featured News

Shorting should be liked, not loathed, page-5

Top Stories

Strategic Energy extends its QLD copper-gold frontier with Diamantina acquisition

History repeats for DroneShield investors but carnage so far subdued

Listen: HotCopper Wire Podcast 018 – Potatoes, TACOs, and the $120M helicopter heist

HotCopper Highlights: Trigg; Droneshield; Lumos & more

A new NASDAQ listing for a key player in the global critical minerals space

Prospect's Mumbezhi Project puts it at the middle of copper's megatrend. And FQM just bought in

Syrah jumps +19% as graphite tariff threat spurs optimism down under

Burgundy plunges -20% after turning to layoffs to navigate record-low diamond prices

Saturn brings up seventh straight Apollo Hill upgrade on 'impressive' 300-hole drill run

Week 29 Wrap: ASX hits new all time high of 8,766pts ahead of Aug 1

Featured News

Featured News