Just a side note on “the shorts” and Tesla...
As an investor, short sellers are your friend. They alert you when something is not quite right. Short selling is difficult and risky. These guys don’t take what they do lightly. They do their homework. Even Buffet concedes they are good for the market and help uncover fraud and accounting problems.
Short sellers can’t damage a good stock much. If they sell a good company short, they will get squeezed and then drive up the stock price, when they are forced to cover. Musk has tried several times to initiate artificial short squeezes with his “announcements.”
CEOs have vilified and scape-goateed short sellers as a cause of floundering stock prices throughout stock history, and you can read interesting accounts of it from the 1920s from trader’s perspectives. The company stock will be failing for legitimate reasons, but short selling makes for a better excuse than the company admitting they aren’t executing well.
When you hear the leader of a company complaining about the short sellers... beware and be cautious. If the company is doing well, they wouldn’t have to do much except wait for them to get crushed by the data and results.
You can see great short covering rallies in a stock when heavily shorted companies do well, and also near the last gasp as the shorts take some profits out, after big declines.
As an investor, short sellers are your friend. They alert you when something is not quite right. Short selling is difficult and risky. These guys don’t take what they do lightly. They do their homework. Even Buffet concedes they are good for the market and help uncover fraud and accounting problems.
Short sellers can’t damage a good stock much. If they sell a good company short, they will get squeezed and then drive up the stock price, when they are forced to cover. Musk has tried several times to initiate artificial short squeezes with his “announcements.”
CEOs have vilified and scape-goateed short sellers as a cause of floundering stock prices throughout stock history, and you can read interesting accounts of it from the 1920s from trader’s perspectives. The company stock will be failing for legitimate reasons, but short selling makes for a better excuse than the company admitting they aren’t executing well.
When you hear the leader of a company complaining about the short sellers... beware and be cautious. If the company is doing well, they wouldn’t have to do much except wait for them to get crushed by the data and results.
You can see great short covering rallies in a stock when heavily shorted companies do well, and also near the last gasp as the shorts take some profits out, after big declines.
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