It's one thing to short a stock because you think you can
It's one thing to short a stock because you think you can make money on it. Look at how an attack article on SAVA reaped gigantic profits for the shorts.
But there are other reasons to short a stock.
For instance, if you are trying to suppress stock price, then you relentlessly drive the price down with shorting. If you are, for instance, a hedge fund, you can do this easily and inexpensively.
Are they doing this to make a few cents on a short?
No.
They do it to suppress stock price so that a big pharmaceutical company can buy the small company for much less than its actual value. Or, the underpriced small company, negotiating from weakness, has to make a partnership deal for much less money and much less favorable terms.
Certain Swiss pharmaceutical companies have had lawsuits filed against them for having 2nd parties short the stocks of companies they wanted to buy. Some of us have seen this kind of activity aimed at other small biotechs that we owned. Research what happened to ONTY. And you will see that the ONTY travesty was triggered by tweets from someone who also attacks CYDY.
And, of course, if you are trying to do a hostile takeover of a company, you might want to keep the stock price as low as possible, so that shareholders will blame management.
Fool me once, shame on you. Deny that this happens, shame on you.
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