Neal: You are right. The shorts did not slaughter DELGF and IPM; they profited from the fact that both stocks had high valuations, and neither delivered the goods. Neither stock tanked until it was demonstrated that they did not have the goods. I was speaking metaphorically in regards to the Lion.
I agree, if Naxos has the goods, the presence of the shorts will add to the buying if and when Naxos demonstrates their proof.
On the other hand, if Naxos were to disappoint, you should be glad that the shorts are here, because their covering (at lower levels, of course) would help to cushion the fall.
When I read IPMCF's "Black Friday" PR, I thanked my lucky stars that the shorts had a substantial position, because their covering helped me to get out without being totally crushed.
So, all in all, if Naxos is being shorted, their presence is not in and of itself a bad thing. |
