(Total Views: 474)
Posted On: 12/15/2021 11:40:45 AM
Post# of 154122
"Why would someone believe it is better to make money shorting CYDY than buying and holding stock?"
Because their goal is not primarily making money from shorting. If there is a group of shortsellers and hedge funds who are shorting so that CYDY's stock price stays down, the company can't uplist, and funds can't invest (because the stock is under 5.00, which is the threshold for most funds) -- they would not care much about the profits (although they are profiting from this). If this is like similar operations that have been documented in the past (two European Big Pharmas) -- some of the shortsellers are funded (through layers of insulating intermediaries) by those who would eventually profit from CYDY taking a bad deal.
Someone wants CYDY to be in a bad bargaining position for a partnership or buyout offer.
Because their goal is not primarily making money from shorting. If there is a group of shortsellers and hedge funds who are shorting so that CYDY's stock price stays down, the company can't uplist, and funds can't invest (because the stock is under 5.00, which is the threshold for most funds) -- they would not care much about the profits (although they are profiting from this). If this is like similar operations that have been documented in the past (two European Big Pharmas) -- some of the shortsellers are funded (through layers of insulating intermediaries) by those who would eventually profit from CYDY taking a bad deal.
Someone wants CYDY to be in a bad bargaining position for a partnership or buyout offer.
(6)
(0)
