Don’t Blame the Short Sellers for Your Horrible Company
As it shows people fall for the pump. The shorts just come in and dump them all the way down into the gutter. It is not the shorts fault that the companies are fake to begin with. Listening to promotions on CNBC and other financial “entertainment” shows will get you in trouble. Of course the president of the company is going to come on and say how wonderful his company is. If you do your due diligence you will easily see that the company has nothing going for it. You’re just being setup for a pump and dump.
Companies Blame Short Sellers
This trick is so old, it should be outlawed. They blame short sellers for their plummeting stock. What is worse, the government agencies get in on the act, and the shameless media becomes the yes men for them both. Not once has the media asked the question, “were you worth $80 / share?” No, they proceed to print how short sellers were to blame for stock market crashes and wiping out 401k plans, and the housing collapse. Noone wants to hear that housing was overpriced, fraudulently or that companies reported fake earnings, which included labor cost cuts, inventory cuts, and expense cuts. You can’t earn a cut. Just like buying on sale doesn’t save you money, you still paid out money.
Don’t Blame Me for Your Lack of Due Diligence
Don’t get angry at me for pointing it out. Don’t get angry at me for showing you how bad you are at researching where you put your money.
Is Goldman Sachs to blame for the people it scammed? Or, are the sophisticated investors who fell for it to blame? They argue that they did not put anything in writing that they said over the phone or in verbal conferences.
Should this be a warning sign to investors that your due diligence doesn’t stop at calling the company ans asking them questions over the phone? Can officers of the company lie to your face? Can officers of a company lie in phone conferences? Are you going to keep your holdings in a company that blatantly tells you that they have a business right to lie to you over the phone and in verbal conferences? Will you continue to do business with such companies?
Or, will you take this licking and then make sure every company you invest with has in writing that they will not lie to you in verbal communications with you, nor withhold information from you in verbal communications?