Correct me if I'm wrong, (and someone ALWAYS does <G>), but can't you only short a stock on an uptick? I know that USED to be the rule, but I'm not certain that is still the case. But assuming the rule is still in place, you can't blame the bulk of friday's plunge on the short-sellers.
And please remember, there were/are people holding RSYS with a 300-600 % profit in less than 12 months...and that can make you a little skiddish. I'm sure most of the sell-off was nothing more than good, old-fashion profit-taking. If you've turned 20K into a 100K in only a few months, you attention is focused on only one thing...WHERE SHOULD I EXIT ?!!! If RSYS had only advanced 30-40 % in the last year, instead of the ACTUAL 300 - 400 % , I'm certain the sell-off would have appeared less dramatic--maybe 2-3 points.
Now, with that said, what I find worrisome is the announcement of co-founder's retirement COUPLED with the SEC probe. It has the appearance of trying to establish "plausible deniability", or perhaps an attempt to separate the "message from the messenger". And you have to believe that the top-brass at RSYS are savvy enuf to know this, yet they chose to do it anyway. You can't help but feel that something is "not right" !!! |
