Skullcandy, Inc. (SKUL) Message Board
-
SKUL Naked-Short Sellers Fleece Investors
How Short Sellers Fleece Investors
Here is how the short selling scheme works: stock prices are set by traders called “market makers,” whose job is to match buyers with sellers. Short sellers willing to sell at the market price are matched with the highest buy orders first, but if sales volume is large, they wind up matched with the bargain-basement bidders, bringing the overall price down. Price is set by supply and demand, and when the supply of stocks available for sale is artificially high, the price drops. When the bear raiders are successful, they are able to buy back the stock to cover their short sales at a price that is artificially low.Sentiment: Strong Buy
-
Of course they try, but honestly it's easier said than done. The volume on this stock is low enough for individuals to bat the price around -- but knocking it down low and buying it all back low are two different things.
- 6 Replies to astral_tsar
-
scam imo.
Sentiment: Strong Sell
-
grand slam
Sentiment: Strong Buy
-
Class Action Lawsuit
-
STOP this illegal manipulation being done at expense of retail investors.
Sentiment: Strong Buy
-
Perhaps that is what they have been doing for the last week of trading or even since January, 2nd, buying it back low.
They got it under the Jan 2nd low of $6.50 for five straight days now, yet they are not taking it under that spring (shake-out) low of $6.34. Today would have been a good day to do that, inflict fear, and send it lower, but so far they are not doing that. So, either they are 1) re-distributing and are not yet fully loaded short, or 2) they are accumulating and don't want it to go any lower which would scare away/frustrate the specs, who they need to hang around for when they are ready to mark it up. -
I haven't heard more true words than that in quite a while on the boards. Honestly it doesn't make sense from a short selling perspective to continue to short at rock bottom prices, especially on a low volume stock if you know you will have to buy it back.
I think that people demonize short sellers a little more than they should, even though I'm long here I don't mind if they make a few bucks on their trades. It doesn't ultimately make any difference to the value of the company.
-CSentiment: Buy
-