I understand he is saying that for WHC, but his take on the shorting process is certainly not what normally happens. Look at PLS, IEL, CTD, BOE, CTT, LYC - some of the most heavily shorted businesses for the last 12 months. Not a CR in sight
Maybe, just maybe shorts target businesses with questionable futures. WHC only has ~2% short - essentially what it was back 6 months ago. The decline in share price isn't a result of shorters.
It is such a cop out by HotCopper posters when they claim shorts are the reason for a share price decline. Look at PLS - 20% short, and it's stabilised around the $3 mark. Just accept that there are some that think the decline in met coal prices combined with increased costs make this business less attractive than it was a few months ago. Simple as that. No conspiracy.
WHC Price at posting:
$6.69 Sentiment: Sell Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)