Citron is a short selling firm that yells fire in order to push a stock lower. You can bet any target they set is NOT an honest appraisal--rather, a number plucked out of thin air to scare shareholders into selling, and the price targets they pick are lowball, unrealistic ones. And their target is $20. And your target is even lower? No one will take you seriously.
If this is a failed short attempt, please sign me up to fail. Citron has made plenty on this short, and my guess is that they aren't finished. Any firm can post a hit piece and legally hide behind the concept that it was just their opinion. The fact that the stock's price is based on future revenues makes it very easy to attack. I'm long and regretting it.
I doubt what you say. More likely, their motive is simply financial. Easy for them to knock down a company based on future earnings by creating uncertainty, which results in an initial hit on the stock. Buyers step away due to the uncertainty. On light buying volume, it is easy for them to short more and create more selling pressure. At some point longs panic and dump their stock, fearing the $20 target may be correct. They can make up any ridiculous number they want and claim it is their opinion. Easy money for them. Unethical and hurts others but as long as they make money they don't care.
That could change quickly when the market turns. But AMBA basically going sideways on an ugly day suggests we have the potential for a nice gain of $2-$3 in the next couple days. If we get that, I will be looking at selling covered calls for a nice premium.
Stating GPRO will close at $26 by end of the week is ridiculous. Given that you're entering late on this short, I suggest you sell the $40 puts against your short postion expiring end of week for $1.50 to give yourself a cushion. Much better than waiting for your lowball target.
You're late to the party and will lose money unless you cover for a few pennies gain before the end of the day. We are headed back to the high $30's near term.
This is what they do. They wait until momentum is slowing and then step in and try to scare stockholders. Easy money for them. If they turn out to be totally wrong, after they scoop up their panic money, they can simply say "That was our opinion at the time. We misjudged the demand." No accountability. And also no reason to believe anything they say.
The main difference between Citron and shorts screaming about how awful a stock is on many different boards is their size and timing. They waited until they saw the momentum stall, even on a huge rally day (they likely contributed to that stall by short selling) and then announced the company was way overvalued. Given momentum was already in their favor, it was easy enough to push things lower by a few over the top negative comments. And given that these comments are self serving, you can't trust anything they say.
I would bet a lot of money that you won't be able to sell for a profit on Monday, even though I am long the stock.
Should work as long as you didn't sell too many. The bottom can't be far away. If you get put the shares you can turn around and sell covered calls until you're out of the position. Somewhere in here we are likely to have a sharp reversal IMO.
Dirty Rotten Scoundrels? Love the part when Michael Caine is trying to show that Steve Martin doesn't feel any pain at all. I still think selling the $40 calls is a good alternative to bailing. With a little luck it will stay in this range, making it possible to sell the calls again once they expire. I got around $2 for calls expiring next Friday.
If your stock doesn't get called away, repeat the process and you have just recovered over $4 of recent losses.
Its only a scam if they take it up to nosebleed levels. And I think we would all welcome such a scam at this point. We have had some false starts. Hopefully this rally is the real thing and gets us to the high $40s or even higher.
We would have if AMBA hadn't been clobbered afterhours. Our bump will probably be down $2 instead of $2.50. Bad timing, as GPRO was off its lows and beginning to come back some.