I think I struck a nerve....
posted on
Oct 06, 2015 11:36PM
I checked the SH board today...and saw that CTW, or whatever handle he's using now, that I found myself in his cross hairs for my suggestion that shorts selling is being used as a tool to shake the RVX tree....to either scare off retail, or to play on their lack of patience.
Its what I believe is happening.
80,000 shares short is not a big number....not when measured against the outstanding shares. But its not being done by retailers, not by someone using a discount on-line broker. To engage in this type of market activity you either need to be a Market Maker Broker Dealer or you have to hire one. That doesn't mean you have to go with a big firm either....in fact this is what small boutique shops specialize in.
High net worth individuals will use small boutique shops.....they're big fish in little ponds. Someone with a net worth in the millions, at a Nesbit or Wood Gundy, you're still just a number. But with XYZ specialty investment services, now you're a big wheel.
What's that Mr. Big client at our little firm? You want 100K shares of what company? Resverlogix? I've never heard of it, what's the symbol....I'll do some research. Ring ring...what's the deal on RVX guys? Looks to be a fair number of shares available on the ask....oh, I see...those are your's eh. How many of them are real? I have one of my largest clients wanting 100 large. None? That blows....alright, I might be trying to drop it then, be ready.
And so it goes.....Mr. Boutique goes tree shaking and finds his firm short 10K....all because of bunch of message board posting stupid retailers won't let go of their shares, and when the shorting drops the price...instead of being scared they buy more.