At a minimum I hope the SEC should at least make life difficult for them. Is there any case precedent where the SEC actually recovered money for shareholders, or is the worst they can do some kind of slap on the wrist that would be nothing compared to the millions shorts have already made on this play ?
Or a good audit report and it may gap up right past 12 and 13
Obviously the shorts are wrong on this one, like they have been wrong the last 4 years unable to recognize success when they see it. They really are pitiful people.
thats what I would do in his place. We do need people like Block out there looking for fraud and raising red flags, it keeps everyone honest. In this case it provided a nice trading opportunity for me short at first, then making more money long recently when I realize most of not all of Block's claim's where incorrect. The idea that shorts who cannot cover quickly do to the size of their position won't pay for this mistake? It will gap up on the audit results and trend side ways to up until then so they should be covering as much as they can before then.
The reality is closer to 95 percent lies. No human being is 100 percent perfect. The audit results will confirm the truth, which is likely to be no significant change to the previously stated financials.
Absolutely ridiculous. Oh, there isn't any fraud, but the stock deserved to be hit anyway and there won't be a short squeeze because "management is to promotional"
That article today was a bunch of Bull. On the one hand admitting the shorts are wrong, and that there probably is no fraud near the scale that caused the sell off, then saying management is to "promotional" so no one should buy the stock and the shorts should not pay for their mistake ? What do you expect any decent management to do when faced with the kind of out right lies and slander they have been hit with? What would any reasonable person do? Say, "oh, have to be careful not to sound to promotional even though we are doing well?"
like the other guy said. They could sue, but NQ is a public company and there is freedom of speech so no law against publishing speculation and innuendo in an analyst report. Bulls will always pump their case and Bears will always do the opposite. You also see speculation all the time in very bullish analyst reports. Best they can do is respond to everything and do a recent audit which they are doing.
Sentiment: Strong Buy
In situations like this the market does not affect the stock. Why did it go up 10 percent Friday when the market was down? The stock will move based on news like audit results, and there will be some tax loss selling up to the 1st since one of very few stocks down in the entire market to tax loss sell. January I add another 17,500 to my Solo Roth and some of that will go into NQ which is the same thing other longs here are doing. We are not large investors but across the whole population those new year flows tend to boost stocks. We shall see over the next few weeks. What it all comes down to is the audit results. Shorts are betting the audit results will be horrific at this price point, and longs are betting the results will be not so bad. Until then the stock will be volatile and not market driven.
Like it is really tough to write 81 pages. He probably told some bright college kid his thesis and had him write it up. In any case the why is tens of millions profit on an existing short position over 20 then cover at 10 and not a single word of it has to be true to make that work. Obviously, since it did work and not a single claim in that report has been substantiated yet. In fact every claim has been refuted with hard data. So yeah, he got the last one right and he got a couple wrong as well in the past. This one he got wrong on most if not all counts but it doesn't matter because he already covered his position. The short bag holders who got in any time after the first gap down will be the one who get crushed eventually when the audit results are released, which the company volunteered to do with Price Waterhouse. Did he pay any price temporarily destroying lots of value for those companies that where exonerated ? Not that I know of. All it takes is publishing a report that sounds plausible but in reality contains nothing more than speculation and innuendo and viola 30 million easy money in the bank account. Just say your sorry after the audit and everything is back to normal. In reality the market does need hyper critical reports like this to keep companies honest. Lets everyone know someone is watching closely. The answer to your question is he could not have been more serious about, but that doesn't make it true. Have you ever met anyone who was very serious, and not entirely correct ?
Sentiment: Strong Buy
The buybacks at this price will really help future EPS, and it also raises confidence. Wonder if they do anything news worthy at these annual meetings ?
as they have been the past 4 years, but I think today took a bigger bite out of their back side than most days and the rally that began today will take the whole market to new record highs. Shorts tend to be short in general, not just NQ, so they are hurting even if NQ did not toast them today it will eventually. I don't know when that audit will be releases, or where it may bottom near term, but I am in till after the audit release regardless.
the news is good, but there where a lot of large funds sitting on huge GERN losses 6 months ago before the news came out so some sold into strength. Now that the volume is back to normal we can continue the uptrend and hope for some partnership news.
Will a clean Price Waterhouse audit report change your mind ? Because that is what you will be looking at not to far into the future and the gap up will be large. I was short at first, took profits at 11, and went long. Even Muddy waters is no longer standing by the majority of their initial claims at this point. In this case they got most of it wrong. After 2 months we haven't not seen proof for even one claim in the Muddy Waters report which is honestly making the whole thing look like an unsubstantiated short con job that they may have to answer for in court once this audit is complete.
The company had to reduce leverage, and hedge against higher rate then rates stabilized and will probably go lower near term. So I expect those hedge positions to lose money and another dividend cut next week. Even expecting that I was still considering buying, but reading about the personal nature of management they don't seem like very good stewards of the company. Granted everyone acts in their own interest to some degree but they pushed that over the line if not out right illegal actions placing family friends over acquired companies like Chimera who immediately made 100 million dollar mistakes and drew SEC threats. That is very bad, kind of thing a moronic dictator would do. This is a tough environment to do well in even for really smart decent people. I cannot rule out the risk that NLY will make a big mistake since the risk of excessive leverage can force you to do what you know is the wrong thing financially. They had to hedge and reduce exposure but as things turned out that was worst thing to do in terms of q4 results and we will probably see that show up in another dividend cut so I just cancelled my order. Maybe I will miss a big rally, but I just don't see the catalyst near term.
good news like clean audit results that cause the price to sky rocket due to a massive increase in the number of investors following the stock, and an enormous short position with no way to cover other than forced margin buying after that news is released in some cases. If you don't cover before that press release hits you will take a large loss. Everyone knows shorts are very vulnerable here.
Sentiment: Strong Buy
wow, I am not the only person in the world trading this event that reads the bulletin board. The company promised to release the data before January 1st so I expect they will do everything possible to make that date. It will certainly by released before the Jan 17 option expiration date. How are you playing it? Personally, I am neutral around the 40 strike. My guess is that the phase III results will be similarly good as was phase II and that much but not all the good news has been priced in. Also, this is not a break through product with the potential to cure all cancer or reverse the aging process. It will address an already served market of known size which would result in predictable returns. The option implied volatility is calling for a 10 dollar move up or down. Anything could happen, but I am betting even if does move 20 percent there will be a correction to bring the chart back closer to the mean which has been trending side ways.