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Take a short position in BroadVision update

March 3rd, 2012 · No Comments

Staggering manipulation going on, truly staggering.

We can say that:

  1. Today’s valuation (a market cap of $200+ while sales are at $17.5M and declining and the company makes a loss) is absurd. There is absolutely nothing in the company’s development that even remotely suggest any dramatic turn-around is near (orĀ  will happen at all, the company’s history is one of dramatic decline of sales, market cap, and profitability)
  2. The only thing keeping this up is a newsletter run by rather shady individuals, they have been pumping this for 2.5 months and it’s amazing they’ve been able to keep it going for so long
  3. The amount of people sitting on big profits accumulate whilst the number of ‘bigger fools’ must be rapidly declining
  4. The above mean that the dump phase can’t be far off. Anyone taking a long position can have the rug pulled from underneath his account at any minute. It’s simply crazy to go long
  5. It’s not a question of if this happens, but when. This will come unannounced, and with rather dramatic fashion
  6. If you can go short at these levels, even if there just might be one last gasp up, profits are guaranteed if you manage to stay out of margin calls (so don’t bet the bank here).

It is rather sickening to see that this kind of rampant manipulation can be going on under our eyes. This is a prime example of people taking advantage of information asymmetries in financial markets.

While we submitted our own efforts for Seeking Alpha (still in editorial review), others were onto it as well

 

Tags: Hype alert