11-28-2012, 07:08 PM
Great article Palm, this bit really jumped out:
"If you are wondering why would they short more shares even when a company like Herbalife is obviously a healthy growing company. Here is the reason. Since the shorts already have the investment community wondering about problems, introduced by the shorts themselves, concerning the company; since shorts have already shorted $745 Million+ (12,422,168 X $60 per share (my guess at average share price shorts sold their shares at)) shares of Herbalife; and by just adding almost $32 Million (585,409 X $54 average-?) more shares shorted, the shorts were able to take the steam out of a lot of the longs' enthusiasm over the 2nd quarter financial news, and now the shorts believe they will have a better opportunity to buy to cover their shorts at a lower price as well as they will have more time to do so. At least that's what the shorts hope for."
Sound familiar? After 9 months of waiting for NEC approval all it took was to aggressively short the stock the monday after OE day and "the shorts were able to take the steam out of a lot of the longs' enthusiasm".
And it's working for them - you can tell from the tone of the message boards that people are getting worn down by the constant negativity and uncertainty. Usually a good time for the stock to turn.
"If you are wondering why would they short more shares even when a company like Herbalife is obviously a healthy growing company. Here is the reason. Since the shorts already have the investment community wondering about problems, introduced by the shorts themselves, concerning the company; since shorts have already shorted $745 Million+ (12,422,168 X $60 per share (my guess at average share price shorts sold their shares at)) shares of Herbalife; and by just adding almost $32 Million (585,409 X $54 average-?) more shares shorted, the shorts were able to take the steam out of a lot of the longs' enthusiasm over the 2nd quarter financial news, and now the shorts believe they will have a better opportunity to buy to cover their shorts at a lower price as well as they will have more time to do so. At least that's what the shorts hope for."
Sound familiar? After 9 months of waiting for NEC approval all it took was to aggressively short the stock the monday after OE day and "the shorts were able to take the steam out of a lot of the longs' enthusiasm".
And it's working for them - you can tell from the tone of the message boards that people are getting worn down by the constant negativity and uncertainty. Usually a good time for the stock to turn.