3 ms·
many people have made heaps of money these past days shorting grpn. let's wait and see what happens by the time the 180 day lock-up expires. the risk with shor
by antr 15y ago
many people have made heaps of money these past days shorting grpn. let's wait and see what happens by the time the 180 day lock-up expires.
the risk with shorting grpn today is the small free-float given that it's easy to create demand with small amounts of capital. it's a no brainer that when the lock-up expires this stock will fall like a brick.
- deleted 15y ago[deleted]
- gujk 15y agoIf it's a no-brainer, why aren't short sellers flooding the market and driving down the price to the post-lockup price?
- antr 15y agothere is a limited amount of free-float which you can borrow against. the counter-party needs to purchase that stock, and if a large number of investors want to short sell the stock, they are indirectly increasing the demand. a good example is how hedge funds lost eur30bn back in 2008 trying to short sell overvalued volkswagen stock. i.e. Porsche selling part of its VW stake to ease a short-squeeze