Low volume and low price makes it easy to buy a little high and sell short a whole bunch at the same time. I love stocks like this. Even a small investor with $1,000,000 can move this stock a few cents with a single trade. 10,000 shares at 10 cents a day is an easy $1000. That's $20,000 a month or over $200,000 a year. And that's using only $35,000 a day. $35,000 for a $200,000 return -- you do the math.
Are you commenting on this stock? The spin-off is old news. I don't see where this is a major factor currently. Those who got the VZ spin-off had plenty of time to dump. I'd venture to say most of the current selling are speculators that are dismayed at the continued decline.
Basically what we are seeing here is a huge amount of dumping. Numerous of shares were distributed as a dividend through the spin-off and the people just don't want them. I think that it is safe to say that a sell off will continue until the company can establish a concrete venture with revenues. IAR is in a real tight spot with a diminishing PE, acquisistion and development cost, along with dept and interest payments. Dippedy-due. You have to remember that the economist are anticating a deeper than expect contraction- its going to be a really tight squeeze until the second half. Besides, what where the first four weeks of broader market trading condition? Down! I think we'll continue witness large sell offs at any immediate recovery in the company's stock.
The incentive is to make money. But I believe that there are more customers who would now jump in on the long side rather than the short side. There is just not enough profit on the short side to take the risk. AS soon as the BOD takes a stock buyback posture there would be a buying panic, IMHO.
So please do stay short, I may take a profit for a few shares when I do sell to you only because you have been very cordial in this discussion.
Hedge funds are not bound by the $5 rule and the individual investor generally will not have the resources to sink a company. Check out http://money.cnn.com/2008/04/29/news/companies/McLean_Bulldog_Shorts_Story.fortune/index.htm?source=yahoo_quote
for a short story about how one hedge fund and mainly Einhorn who has had it out for ALD. Truth gets lost when there is money to be made in bringing down a company. If investors want truth then you need to stop the shorting of companies. Anyway you can always buy put positions if you think a company is over valued.
By the way if you think that shorting can not bring down a company then how would you explain when the stock price drops and covenants are called forcing the company into bankruptcy protection? Many companies must maintain a certain value or they either can not access capital, or their existing loans can be called due. At least with buying a put the short person has to put up front real money and has real risk.
Much of our "cheap food policy" is to blame. Farm policy subsidies have made US food production costs below that of most countries where it was cheaper for them to buy from us. As a result, developing country farmers had to compete against our efficient farms and their marginal costs were too high to make their food production self sufficient. Now, with higher prices, they do not have the developed capacity to produce enough to avoid famine.
We need to teach people how to feed themselves instead of pointing fingures at who is to blame. Speculators boosting the price of food help farmers produce more by giving them incentive to take on more risks to produce more food.
What surprises me is that you would post such a thing on a message board. Really, if you're actually making these trades in the manner you've put forth, then you have just admitted to share price manipulation ...an illegal activity.
I can see how it would be hard to prove based on trades alone, but (lol) as you've just posted a confession, it won't take a Perry Mason to convict you. Best part? You titled it "Manipulating IAR is child's play."
Wow. I hope for your sake you're just a windbag. The position that you're too small to be noticed is not an enviable one.
Do not even waste your time with someone so bold as to admit to manipulation of a stock. Just take and report them to the SEC at email@example.com and let them investigate. Since stock manipulation is so rampent I think that shorting should be made illegal.
You're a fukking buffoon. Bottom line is I'm a trader and it's easy trading this stock. I buy. I sell short. I sell. And guess what for every buyer there'sw a seller and vice versa. Now if you think it's illegal to day trade a stock then you're a bigger idiot than I thought. Go ahead. Turn me in. Then I'll sue your ass for every cent you own for malicious conduct. Come on bozo -- take your best shot. I'm going chew you up and spit you out.
Mexcom, there certainly seems to be a few people with sensitive toes here. Please re-read my posts. I never said there was an "axis of evil" in Trader land. I expressed an opinion that millions in the world are currently unable to purchase the basic necessity of flour and rice because speculators have helped jack up the price (yes, I do know they aren't the only culprits).
I too want farmers to make enough money to do well - we have lost too many as it is. However, we are creating what one economist called yesterday "a perfect storm of misery."
This isn't just impacting the poorer nations, it is also impacting lower and middle income people in the US as well.
One of our local, primary foodbanks has about two weeks of food left right now and it is having a very difficult time getting those same necessities - rice and flour. But I guess unless it hits you personally, it isn't an issue.
I hope you have a great day and a wonderful weekend. Best of luck on trades.
There is no evil force manipulating the price of this stock or any free market traded item.
The NYSE is probably the most regulated market in the world. For the trade in this company, there are many buyers and sellers.
I take exception to your comments about speculators. Especially those who take positions in commodity markets.
Speculators are the ones with money who bear the risks of price fluctuation. Farmers who want to make good business decisions hedge their grain to lock in a price that guarantees coverage of their costs of production (fertilizer, seed fuel, etc.) It is the speculator who buys this in future contracts and takes on the risk of price decline.
The net result of speculator activity is that the farmer decreases his business risk, grows more grain and fewer people in this world would starve.
The speculator in boosting the price temporarily, allows the farmer to make marginal production decisions to deploy dearly priced production inputs and to utilize marginally productive land.
InvestmentG, I am not sure why you are so riled up with me other than something I said must have hit a raw nerve. I do not own a company to employ people. I wish I did and could do that. That being said, when I volunteer at the women's shelter, I mentor them on how to get a job, how to have confidence in themselves.
I also donate and gather donations of suits and other suitable clothes for these women to use to interview for jobs. If needed, I will also take my lunch hour to take them to interviews. I write resumes for them. And on occasion, have babysat their children so that they could go in to interview.
I don't consider myself a great wonder, there are many people who do what I do.
It is the old addage of give a man a loaf of bread and he will eat for a day, give a man a hand up and he will feed himself.
If I hurt your feelings in some way then I apologize, my statements were not aimed at any specific person. It is just frustrating to see on the news that people are helping add to the woes of those who are poor and distitute by speculating on grain futures.
I can't solve all the world's problems (I only wish I could) all I can do is take one thing at a time in the community where I live. I am in this world to earn money to live, not to live to earn money.
I am happy that I can help - even one person. Back to your point, do I employ people, NO, do I help them become employable and employed, YES. What makes it great is getting a hand painted picture from an eight year-old who wanted me to see the new apartment she and her mother and brother have moved into from the shelter they were living in.
What makes my life seem grand, is knowing I do make a difference, even if it is only one person at a time.
When was the last time you got to attend a graduation ceremony for a 55 year-old man who received his GED and is now working on a college degree. Six months ago, this man couldn't read at first grade level.
These are things that are beyond any price you could put on them.
Again, do I employ hundreds, no, but I can count hundreds as my friends. Best regards to you and have a terrific evening.
Steve, sometimes just keeping your mortgage paid in this business atmosphere is a good thing. It keeps you from being one of those who have suffered through foreclosure. That in a way helps (convoluted as that may seem).
Giving to charities does not always mean giving dollars. It can mean giving an hour or two here and there to help - clean up drives, mentoring, teaching, coaching little league, reading to children in libraries, are all ways to "give" to charities.
If you or others feel an urge to help, but don't feel you can contribute money, then contribute time. I have met some truly wonderful people by volunteering.
Some corporations will even pitch in to help if asked by employees. It is all good in the end.