A couple of responses: (1) you state "Everything boils down to making money and everyone has their own style and comfort level when they strive to accomplish this task." In other words, if you could, you would "sell your grandma" to make money (assuming it's within your comfort level). As Martin Greco(?) stated, "greed is good"...only if you want to make money (which of course all of us do). However, there are many ways to make money. All I was saying is that the concept of shorting a stock goes against conventional wisdom of investing. When you short, you're not investing in a company, you're "betting" against it. Also, I have never understood why anyone would short a company when one's maximum return is only 100%, not considering options related shorting. Next, (2) you state that "Shorts don't make companies go broke anymore than Longs make companies become wealthy. The management of the company itself makes these things happen." True. However, the negative, and quite often, untrue news released by those with a short interest can severely cripple a company fundamentally as potential customers may steer clear of such a "bad company" if what was reported was true. It's all a matter of perspective and point of view (as we all know about when watching political ads..."President Clinton CUT taxes"??Yeah right, and I'm the Pope...). Oh well, sorry for cluttering this thread, but I just had to respond to the moral of the story!!
LONG ON IOMG. |
