Robert, the short-interest mole theory is that there is an individual lurking on the thread that pretends to be long and wants the stock to do well, while in fact the person actually (1) spreads false bad news and gloom about the stock in an effort to (2) prompt people to sell the stock in order to (3) push the share price down which adds gains to their real short position (and simultaneously benefits everyone with short positions) and makes the stock look bad which promotes further price declines etc. ad nauseum.
Interestingly, Lizzie made an excellent point a few weeks back, and that is that people complain bitterly about shorts manipulating the stock (particularly with false information) when the share price declines to bitterly low levels, but nobody complains in the least when the stock rockets to extraordinarily high levels, well beyond realistic levels (for example, given the difficulty of implementing the technology in Cymer's case) and yet the situation is EXACTLY the same from one crucial standpoint...the price moves to an artificial and unwarranted price level without underlying factual information to support the move. All of the "rosy" profits and eps forecasts fail to account for the fact that this technology may be an absolute bitch to implement on the factory floor (which is the information that seems to be dawning from Johnson over at Infrastructure, similar thoughts can be found on the Photolithography thread) but while the cheerleaders of the stock fail to account for this, the market doesn't. My point here is that all that any of us want (by your own admission, you included) is factual information without all of the bullshit, good news or bad news. Unfortunately, sometimes in the pursuit of the real, we have to investigate the darker corners of the stock in an effort to understand why the share price is languishing. There is a reason. I think THC (and others) are just turning over stones to try and find it. They may uncover things we don't want to see, but should look at anyway. Now, let's let it drop. For what it's worth, I have always respected your facts AND opinions.
your friend, jess. |
