Happy Independence Day, frens!
I've been expecting DJT to jump, in light of positive developments of late, but have been dismayed to see it drop instead. Seems that the latest acquisition news bodes well, but didn't help today.
Any of you seasoned marketeers got insight into how we're looking? Are we seeing the shortsters on overdrive? I know that the short-term game is NOV, and I'm in it for the long haul but am hoping to get back into the black soon so I can liquidate a bit for other business moves.
Any and all thoughts, observations and insights are most welcome. WWG1WGA
Thanks fren. I called Fidelity a couple of months ago with a question. The agent I spoke with casually mentioned "loaning" shares, and asked if I had received a message in that regard. I asked what it's all about and he explained, mentioning that some people borrow them to short. He offered to check my account to see which shares would be loanable, and if course my then DWAC topped the list. Okay, it was the only one I have significant shares of. I asked why I would do that with shares that I bought for growth - to loan them to shortist saboteurs. He said that I would earn $10k/month based on my holdings. I declined, of course. I didn't fully understand how it wirked, and now that I see the phrase "failure-to-deliver of borrowed shares" I'm beginning to get it. So, they can "borrow" them, use them to short and then fail to feturn them? I assume this means the borrower could help short their value down to nothing. I can't think of a single reason why this would ever be a good idea . . . .
Correct. They short to zero, force delisting, and then never have to pay back anything once shares delisted (theoretically). While they do this they starve the corp of capital raise opportunities (or force dilution at lower and lower market cap for easier shorting), further sabotaging their operations.
Yikes! Here's hoping they all go down in flames.