Far to much is made of shorts by retail shareholders. I assure you Cap Re and Wells are not sweating the shorts now. Its part of the landcape of resource stocks. Some stocks are very volatile in both directions. The difference between retail and big smart buyers like Cap re, is that they research an idea, get to know mgmt, speak to experts in the field and take a position only after that. If nothing changes with their thesis they stay invested and add on weakness (as the big holders have recently). They ignore the noise, because they have done their homework. They are very careful, they may have 500 million invested in an IOC type idea. The sammler peripheral holders come and go, but if the story is compelling and an idea they really believe in through thick and thin the BIGS hold and add on unjustified weakness. This we see in IOC for sure. Its very important to see the difference in how a Cap Re type invests, thats what makes them the most respected fund company on earth. They do their homework throughly. painstakingly, they dont rely on others to get their info, not analysts not pumpers ,,,they do it alone. They establish an investment thesis and stat focused on that. If the story stays fundamentally the same or better they hold and add on weakness.
The antithisis of this is the short story, The reasearch, is weak, they do. They get their info from unsubstantiated charecters they dont meet mgmt, they dont talk to expert, they dont uncover every stone. Most importantly as a company moves forward and shhots down the original short thesis, the thesis then changes, over and over and over. From Scam, to fraud, to no gas, to a little gas, t they cant sell it, to a secondary to blah blah blah, You must see that that is a weak and transparently phoney methodology. As the company proves them wrong they come up with a new problem. So which is it? Is there no gas? Or is their so much that the Govt wants in? Is it a scam? Or do JKM want to buy in as stated by JKM?
Im suprised more IOC holders dont understand this. Your points are excellent. The facts are that bigs have been adding for 2 years. And new more powerful institutions are replacing the smalls.
similar to a Dennis Rodman wishing to run our foreign policy having met Kim Jong Ill over a basketball game! Of course he's really a good guy we can all trust stuff...But equal to the DD of most shorts whacking at IOC..
Excellent post. shorts cant hold down price long after the SD. Their increasing presence actually helps longs, you should be happy there are so many shares short. If you think IOC gets a deal over $1 per mcf, the huge short interest will help longs very much
All true. Id also throw in :Look at message boards of other stocks, NFLX, CRM, AAPL, ETC ETC and you will see the same type of childish bashers, with 1 or 2 semi intelligent ringleaders throw in. All paid. Its part of the investing scene nowadays, nothing to worry.