because more people selling than buying. all the fake news pumps only sucker in more buyers to hold the price up while the shorts can keep shorting to make money. lol bagholders needed, keep buying the dips.
Naked shorts is the path to total short side destruction on JEF's recent false accusations. As volume dries up and sellers walk away from their failed attempt to gain the short end of the play, JEF may be skyrocketing on forced fueling events.
Ticonderoga believes the rapid bankruptcy of MF Global (MFGLQ) will bring increased regulatory scrutiny on the smaller broker dealers like Jefferies (NYSE:JEF). This could drive tougher capital requirements and risk taking rules, as well as an emphasis on long-term forms of financing, Ticonderoga says. The firm thinks Jefferies' cost of capital is likely to go higher, and has concerns about the company's long-term profitability.