<<Bottom Line? To my mind you've just confirmed a pet theory of mine regarding VLNC, C.C., and the currently wave of shorting I've observed during the trading day. This pet theory revolves around the idea that even if C.C. isn't necessarily directly responsible for submarining the bid on a daily basis, there resides in the marketplace a community of individuals who spend a goodly portion of their day researching for potential floor-less candidates(shortie variation of d.d.) and then, when the opportunity presents itself, marshalling and rallying themselves together to hit the most probable candidates. I believe your comments are "fish in a barrel". Nothing wrong with it, we've all got to make a living, but this tactic works best when it remains hidden, no? ;-)>>
John, methinks you are reading too much into this. I have recently begun shorting some floorless "fish in the barrel." It is only within the last couple of months that I added a margin option to my account in order to be able to short in the first place. UOLP was my first whack at the short side, and it turned out to be my most profitable trade of the year.
But if you think the small fry inhabiting the floorless thread are reasponsible for the recent weakness in VLNC, you are quite mistaken, IMO. There is consistent, continued pressure on the stock from one or more large players. I don't think the floorless thread inhabitants could put anywhere near the kind of pressure on VLNC that we have seen ever since late July (which, coincidentally, was when the variable conversion kicked in).
I'm glad you got a chuckle at Zeev's post because I am rolling on the floor reading yours :-) |
