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| SemirB |
 Posted: Wed Apr 18, 2007 3:14 pm Post subject: Naked-Shorts |
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Investing Sr. Associate
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| They call is Naked Short selling. Hedgies use it. So I heard from a Boomarang special on naked short selling. OSTK was a victum of naked short-selling. I think Naked short selling is when you barrow Stock that does not exist to be short sold and you never return it. Or something like that. What do you guys know about Naked Short-selling? |
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| Im Not Warren Buffett |
| Posted: Wed Apr 18, 2007 3:52 pm Post subject: |
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CFO
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Two points to touch on:
1. Naked shorting is technically illegal - I realize it goes on anyways, but the extent it has an impact is mostly guesswork.
2. Are you familiar with the CEO of Overstock? He is, in short, crazy. I would wager he spends more time complaining about naked shorting in OSTK than he does managing the company... at least, thats what I see from Overstock's performance. If the company could just put up a decent quarter, the shorts would need to cover... it really does work both ways - naked shorting might be able to drive the stock price down for a bit, but in the end the divergence between the stock and the company can only be so great for so long. |
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| geb9696 |
| Posted: Wed Apr 18, 2007 6:01 pm Post subject: |
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Investing VP
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| You have a link to an article were I can read about it being a victim of naked-shorting? I am assuming people were arrested if they could prove people did it? |
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| Im Not Warren Buffett |
| Posted: Wed Apr 18, 2007 6:42 pm Post subject: |
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CFO
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The battle of Patrick Byrne (Overstock's CEO) against the "naked shorts" is a pretty well-documented, ongoing affair. Mostly, I think its a cover so he can attribute the stock's poor performance to something other than inadequate business execution.
And FYI, nobody gets arrested for nakedly shorting a stock. |
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| geb9696 |
| Posted: Wed Apr 18, 2007 8:06 pm Post subject: |
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Investing VP
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| SemirB |
| Posted: Wed Apr 25, 2007 9:30 am Post subject: |
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Investing Sr. Associate
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| Thank you very much for your insight IMNWB. There is an entire video on this issue on Youtube like 26 minutes. Just search for naked-shorts. |
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| rick103054 |
| Posted: Tue May 15, 2007 9:54 am Post subject: |
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Investing Sr. Associate
Joined: 08 Mar 2007
Posts: 123
This Month: 0
126.77 e$
Net worth: 15,483.37
Portfolio Value: 15,356.60
Monthly Return: 14.63%
Trades this month: 0
Churn Rate: 0.00%Items
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| GOOD INFO THERE. I'M CLOSE TO RUNNIN IN THE RED TODAY HOPE I END UP STILL IN THYE BLACK |
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| Grimreaper |
| Posted: Wed May 16, 2007 2:40 am Post subject: |
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CFO
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Seems like da SEC has much more serious matters than naked short sellers to werry bout. Like illegal trading that has been constant and consistant during the Dubya "shoot em up and grab all ya can" era ov da mawkets. Of course da SEC will do EXACTLY what they's done all along  absolutely nuthin. In fact, we will need to see a majer mawket disaster bafo thangs become obvious....cause dat be how it werks Nuthin git dunn till it's obvious sumthin needs ta be dunn. Kind ov like the way summa you fokes invest!  See what happens when ya have incompetent fokes in EVERY segment ov govmint? Never mind Girls Gone Wild....this is Scammers Gone Wild at its best! |
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| Do5 |
| Posted: Thu Sep 13, 2007 10:49 am Post subject: |
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Investing Sr. Associate
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Did this happen to BRLC?
people are cryin the blue about it today? |
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| Im Not Warren Buffett |
| Posted: Thu Sep 13, 2007 11:38 am Post subject: |
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CFO
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| Do5 wrote: | Did this happen to BRLC?
people are cryin the blue about it today? |
The longs in BRLC got screwed because the company didn't perform, don't question that for a second. Too often you'll see this asymetric causation thinking that says doing well translates to intelligence, and poor performance is due to outside factors. We're all guilty about it to some degree, it's human nature, but I think the case is particularly acute here. Anyone making a short argument on BRLC in the last month got crucified in the BRLC court of public opinion by the longs (I would know), a number of whom are among the most smug and self-assured pricks I've ever seen. Now that they were proven wrong, the blame is placed on management, short manipulators, etc.
It calls to mind the famous Milton Friedman retort to "A could happen, or B could happen" - or C, your analysis is wrong.
I could go on about this all day, but I'm going to cut myself off and write something useful - perhaps along the lines of "40% later, BRLC is a buy"  |
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| Im Not Warren Buffett |
| Posted: Thu Sep 13, 2007 11:55 am Post subject: |
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CFO
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Direct from the horse's mouth:
CEO Sollitto told analysts and investors that the company simply needs to deliver and the share-price volatility induced by shorts will flatten out over time.
"I've learned over the years that while there are some tactical approaches that we can employ to drive out these short-sellers, the best strategy is always continued execution and profitable growth," he said. |
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