I love it when Shorty fires a shot over the herd to panic it.Last month they paniced CCme and I was able to get in at$8.00.I've since sold at$20. Now they are trying to panic RINO.These smallcap chinese stocks can be pushed around.Be patient pick your spot and you can make a lot of money with shorty"s help.Shorty is my friend.
While your post is informative, there are two things to consider in addition:
(1) many RINO longs lost a LOT of money on paper here today (I'm down over $22K, for example.) Although I have a well diversified portfolio with plenty of dry powder, a scam resulting in a paper loss of more than $20K, even if temporary, is a bitter pill to swallow. Perhaps you're congratulating yourself on not having invested in RINO before today, but this criminal assault could have been launched against any company YOU currently own. I wonder if you would then say "Shorty is my friend"? I have no problem with short sellers, but I do have one with the folks who lie and manipulate.
(2) Even worse, consider the plight of many smaller retail investors in RINO, who simply cannot afford to wait for a recovery in the PPS. Some of them are getting margin calls tomorrow or next week; some have panicked and exited already, and some have sworn to themselves to never invest in Chinese companies or even in ANY stock ever again. Those folks are the true victims here, and their loss not only has destroyed their portfolio and their faith in the system, but it also erodes the entire credibility of the US stock market. And that's something we simply cannot afford at this time in our political, financial, and economic history.
In sum, while I personally agree with you that "Shorty is my friend", and I can point to a number of winning trades where I have bet against an obvious short term manipulation (either a baseless short attack or a pump/dump), I also believe that our current market is badly broken, that there's a long history of failing to prosecute criminal stock manipulators, and that it is therefore very important that the SEC start to go after folks like the Muddy Waters team. Unfortunately, the SEC has already proven itself to be the fox guarding the hen house in many other ways, and so I am not hopeful that we'll see much action from them.
Personally, I'll hold through the turmoil, and either roll a LOT of put options that I sold through the next several months, or just accept the shares that will be put to me and then sell calls at higher prices. I'll wind up OK, but there will be significant damage done to the truly little guys, and perhaps more importantly, to the system as a whole.
Dear Seustis. Thank you for your reply. I to am a "senior' 65.I to have taken my lumps over the years and like you have learned from it. Please undestand that this segment of the stock market is the "WILD WEST'. You had best be well armed before you venture into the wilderness.You are on your own out here.There are Grizzlie bears and hostile natives.The sec is 12 thousand miles away. By the way now that we are entering into "tax lost season'. We can expect more preasure on the share price. Keep your powder dry and let Mr Market make several visits.
Okay...seriously. Let's be honest here. Anybody and I MEAN ANYBODY that would margin a small cap Chinese company is so woefully ignorant that and financially irresponsible they really have no business in the market anyways.
Stop with the bleeding heart crap and refute MW's report. This guy just makes money going both ways - good for him. The market is about making money - not feeling sorry for some investor who chose to bet their home, or margin, or load their IRA with a small cap chinese stock.
JHC - even I bought into this or still might buy into it - it will comprise no more than 1-2% of my portfolio and I certainly wouldn't margin it.
If you are going to be a successful investor you must learn that.
Do you think that I haven't been a victim of a short-attack before?
I tried to fight back and lost my @zz. Now I just take a small hit and exit before everyone else does.
Then I laugh, since I know it means that later, thanks to the shorts who just cost me a few pennies, I will be able to buy back at half-price.
"When life serves you lemons - make lemonaid."
No, the SEC is not your friend, and they are not going to help you. Now they may go after a company after it is way to late for it to be of any help to you. Then they will collect a nice fine for themselves.
Investing in stocks is a big boys game. You can't fight the shorts, but just like with judo, you can turn their moves to your advantage.
I had to learn it and so too will the "small retail investors" here.
If they do, they will be able to make 10X as much playing the shorts to their advantage in the future. They too will see it as the blessing in disguise that it really is.
They will be the ones who go out and buy stocks like ONP and CCME at the bottom and ride them up 100% in a month, since they've already paid thier dues and have seen how the game is played.
Learning the lesson is painful since who likes to lose money?