Correct, and neither can the hedge fund

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Jan 27, 2021
7:43:52pm

Milton Contributor

Correct, and neither can the hedge fund

A simple logic puzzle for you: if they won’t let you short when they know they don’t have shares available, does that mean that whenever they DO let you short they know that shares ARE available?

The answer is no, that does not follow. They always have to believe shares are available to lend. Sometimes they are wrong. The rule is the same for you as it is for Melvin Capital

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Milton

Bio page: Milton
Joined: Dec 5, 2002
Last login: May 15, 2024
Total posts: 730 (0 FO)

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Messages

Author

Time

My bid for WPOD - let's not turn this into Occupy Wall St v2.0

Milton

1/27/21 7:11pm

RE: My bid for WPOD - let's not turn this into Occupy Wall St v2.0

1/27/21 7:13pm

I’m ok with them shorting. I just don’t want them to get bailed out or protected

Triznaynay

1/27/21 7:14pm

I disagree with your second point. shorts, stock price, investor relations all

Baron

1/27/21 7:14pm

Thanks - any examples? Or a mechanism?

Milton

1/27/21 7:16pm

There is pressure to maintain or improve the price. The more shorts and

Baron

1/27/21 7:17pm

Going public definitely does matter. You have shareholders to answer to

Milton

1/27/21 7:22pm

You said this:

Baron

1/27/21 7:25pm

I agree with this completely. The worst year and a half of my career was after the company I worked for was purchased

specsauce

1/27/21 7:50pm

We can agree to disagree

Milton

1/27/21 7:52pm

So maybe speaking to what impacts management when you have never been in the

Baron

1/27/21 7:54pm

lol ok

Milton

1/27/21 8:00pm

It is not an appeal to authority is pointing out that you actually don't know

Baron

1/27/21 8:07pm

pwned

stoils

1/27/21 9:03pm

And impacts the company’s access to capital.Borrowing large number of shares to sell over supplies shares on the market

1/27/21 7:31pm

A case can be made that it damages reputation

Carnac

1/27/21 7:20pm

The difference is they can sell before finding the shares. We have to find them

Spine

1/27/21 7:28pm

This is false

Milton

1/27/21 7:35pm

Nope. If my broker does not have shares available to borrow, I'm told I can't

Spine

1/27/21 7:38pm

Correct, and neither can the hedge fund

Milton

1/27/21 7:43pm

I know they passed legislation following 2008 to help prevent misuse. I also

Spine

1/27/21 7:49pm

Options makers exception makes naked shorting possible still.

rad dawg

1/27/21 8:01pm

There is a fundamental misunderstanding that is spreading here

Milton

1/27/21 9:21pm

So then in the end, the rules didn't work OR we have some market makers who may

Spine

1/28/21 2:27am

Here’s an idea. Let’s run these for profit media outlets out of business.

DiamondDog

1/27/21 7:29pm

Umm thats not what naked shorting is. For a guy in the business this is shocking

rad dawg

1/27/21 7:31pm

Sorry these "regular" guys are putting you though this.

fanbraves10

1/27/21 7:31pm

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