I have to disagree with you. There is a stock that IPO went to as high as $30. Then it dropped to low $4. It was there for a long time but I hung in there and now it is $10+. My mathematical skills were intact then and they are the same with this stock. My calculations show that there is tremendous pressure to go to $12. I find that your persistence to scare investors is only falling on deaf ears, perhaps backfiring even. Everything you are fearing is happening in fact, and it makes me joyous to know just how scared YOU are.
Very simple question, and funny that NOBODY can answer it. You at least made a feeble attempt, but there is no logic to your answer. A "bagholder" is someone who bought shares higher and is holding. ONLY ON PAPER is he behind. And if he is actually buying as Molycorp goes lower, the pressure he creates on short sellers multiplies. The guy who covers lower is buying shares from SOMEONE ELSE, not a "bagholder". For a stock that went from $80 to $5 over 2 years means very specifically that a certain number of people went out the door one way, and for the math to add up, the SAME number of "shares" need to go out the door the other way. The way short sellers are talking here is as if money grows on trees! As when they say a stock priced very high is unsustainable and WILL come down, the same can be said about a stock that is being held down unreasonably. I can see there are millions holding and buying. Anyway, seems people here are smart in some ways but stupid when it comes to logic.
From $80 to $5...and you claim you made a lot of money. Okay, then why are you here? You know, human nature when satisfied is to move on to something else. But if you have been lingering around here for 2 years, seems your story is just a story...and you are really waiting for something that hasn't happened. IMHO, you are upset that their are Molycorp investors who are buying on drops not selling to fear. You don't make money when investors buy, so all you can resort to is scare messages on boards like this. It is very pathetic, and unfortunately for you, a mathematical impossibility to win in the long run.
Please look at your scenario. A stock goes from $80 to $5, so sure, there were opportunities along the way for a short seller to make money. But you have different kinds of shares, and many are untouched. That said, a person who covers borrowed shares is taking money from who? If, and I do stress "IF", an investor did NOT sell, but to the dismay of a short seller, actually BOUGHT on the way down, that's a double whammy for the short seller who has deadlines to cover. From $80 to $5, in those cases, who ever is on the ASK side of the trade took the risk of selling that low. IMHO, that's like Goldman or Morgan. It is they who made that bet, and may lose when the math does have to be reconciled.
Brilliant answer, thanks. As a mathematician, I'm eager to study complex equations that are current quadratic inequalities. Molycorp stock price around $4.50 only makes sense if there is a variable that is not accounted for, something that is illegally entered into the equation. Reading what you say, I can see that variable as shares being created out of thin air! Same shares in two accounts? The only purpose I can see of that is to get people in long positions to sell so that those counterfeit shares can be accounted. But if investors don't sell, then those counterfeit shares have to go somewhere. I don't see how short sellers make money playing this game. The math is not there.
This is the ONLY stock that has made me a lot of money AND in the shortest period of time! I will never sell my $10 shares!
I wouldn't be so sure. My price target is $14.
redtailedhawkshadow, you are mistaken. Widespread belief is that a market maker makes money trading that range, but that's a myth. They are the buyer and the seller...how are they making money shifting their own money from the right hand to the left hand and viceversa?
Why is it that if you visit ANY message board, people are nudging...warning...indirectly begging the short sellers to cover, and claiming that THEN the stock will go up and up and up? It's like this everyday, with every stock! Logic and reason holds that the short sellers do not control price action of company stocks, but the people posting messages seem to believe that they are 100% at the mercy of short sellers! Why is this going on?
That's what I did. That's why I have made over 6 figures so far. Can't understand why people here call this a POS. For me it has been a goldmine.
do you really think that people are so stupid that they can't see the trend here? It was $4, then go to $12, then go to $4, then go back to $12, now going lower again. I bet most people sold like I did in high 11, and now LOVING this!! I look forward to $4, but I don't think that is going to happen. That is why we are all QUIETLY BUYING NOW! You stupid scaring people, while smart people buying back lower what they sold higher!
You should be thanking management, dummy.
this stock has good beta, great for trading highs and lows in short period, and people here complaining about what?? white people stocks stink, all scam on Wall Street, no opportunity for YOU!! At least Dang give you chance to make money. Chinese rule!!!!!!
Why do some people keep saying they are "loading up" whenever stock going down? I am more likely to believe my 5-year old who said that he didn't eat my missing ice cream!
Wake up in morning and see this is great!! But I see it teasing, and will go lower. If not, then who cares too. Go up and I'll just sell more. I think Dang is trapped now.