The guy who should be really defending is the CEO and he is not doing that.
Disagree. The CEO has no business replying to each and every quack and crank. His proper response is “No comment.”
I think it is proper to call out short bashers on discussion boards if for no other reason than to warn novices against dirty tricks.
One of my stocks got a bear raid on Friday. On Monday I learned the name of the bear raider and the first thing I did was to check them out. They turned out to be self proclaimed bear raiders, much like Citron. I never got their report but a summary stated there would be some revenue pressure which management stated would be reversed shortly. I don’t recall the details and I don’t think they are important enough to spend time on – they are a short term issue while my outlook is long term.
The bear raid sent the stock from 37.15, Thursday’s close, to a low of 28.87 today, a drop of over 22%. I added below my cost but a nervous novice likely sold and made the bear raider money.
Funny things happen with bear raids. The bears put out some bad news and sell short driving down the price. If it falls enough then stop loss orders kick in driving the price even lower. Nervous nellies think the sky is falling and sell driving the price even lower. The drop only stops when the market runs out of motivated sellers (at around 11:15 AM for BEAT this morning). BEAT rebounded from 28.87 to 31.35 before closing at 31. I should have been more patient to get a better price!
This is something you only learn with experience and it is worthwhile to transmit it to novices on the boards.
A word of caution, make sure you are not in love with your stock! That can be disastrous.
One can suspect that these short traders sometimes have inside knowledge about number and price of stop orders on broker books. Or maybe algorithms that can figure it out real time, quicker than us mere humans.
A few bear attacks are true, most are FUD events. The shock wave drop seldom lasts long, often just long enough for holders to figure it out.
Why focus on the person? Why not focus on the points raised?
Because context matters. Andrew Left tried shorting TSLA and got his a$$ handed to him. All sorts of complete BS accusations of fraud and such. The guy is a lying scum and should be ignored by all. Actually he should be prosecuted for fraudulent stock manipulation himself.
There is little doubt the current nonsense is the same thing. It’s his modus operandi.
All sorts of complete BS accusations of fraud and such. The guy is a lying scum and should be ignored by all. Actually he should be prosecuted for fraudulent stock manipulation himself.
In a tweet, the short-selling firm contended that Tesla shares could fall to roughly half their current value by the end of the year due to supply and demand problems."
Left said repeatedly that Tesla could not do the things that Elon Musk said they would do, which is why he said it didn’t deserve its valuation. He accused Musk of lying to his shareholders. Over and over again. That would be fraud. Of course Tesla then went on to do the things Left said it couldn’t.
Did Left say these things because he believed them or because he’s a lying sack of sugar? His standard MO indicates the latter. And you defend him because you think that’s a legitimate investment technique?
-IGU-
(got used to ignoring such scum through years of investing in Apple)
With all due respect, if you think you know the company, its operation and have the ability to determine whether it is a fraud or not and you can determine Andrew is a fraud, you are delusional. Don’t get offended by my words, that is not my intent. I am just trying to drive a point here.
No offense taken!
But I never said that I know the company and its operations so well that I can determine with certainty whether or not it’s a fraud. But I know the company well enough to make a calculated bet on the future payoff. For that matter, I don’t know any of the companies in which I am invested so well as to determine with certainty whether or not it’s a fraud. But I’ve been getting better at knowing them well enough to make an educated decision.
Also, I cannot determine with certainty that Andrew Luck is a fraud. But I can certainly determine that he is a jackass who will do anything to make a quick buck and that there is absolutely nothing he said that makes me think his accusations are credible.
At the end of the day, we need to assess all the available information, apply probabilities in some manner to the potential outcomes and make a decision. I feel the probability of being successful to be relatively high and the risk of losing my money to be relatively low. Given that the price to apply these probabilities has made the payoff for success a lot more lucrative, I chose to buy some leaps and see what happens between now and January, 2019.
Thank you for trying to be constructively critical and good luck with whatever it is you decide to do with your Ubiquiti investment.
Kingran, that is the worst piece of suggestion anyone can make.
Sorry, I was looking for the sarcasm font, but couldn’t find it . . .
Of course it’s bad advice, just pushing your comment past a logical conclusion. I probably should have kept it to myself.
I was reacting to your comment about how options (puts in particular, I think) are always too risky and we, lowly individual investors, should never ever sell such because it will almost inevitably turn sour because we are betting against market makers who by virtue of their position always have better information. Not my experience. I have lost money on options, but 100% of my experience has always been selling calls that got called as the stock continued to climb. I lost the opportunity to make even more money if I had held the stock. You can only roll an option out up to a certain point.
The thing that is undeniable is that we each have our own set of risk assessment and tolerance levels. Yours and mine differ.
One more thing, I never put my life savings into an option trade of any sort. It’s always a very small percentage of my available funds. In this case, I still had some funds available from selling KITE. So, I used it to cover the sale of the puts. If, UBNT goes to zero, yes, I’ve lost that money and that would make me feel bad for a while, but it would not decimate my portfolio. But it is my assessment that UBNT is not going to zero irrespective of what Andrew Left says.
So good luck to you. I hope you do well with your strategy which I’m sure fits your temperament.
I was reacting to your comment about how options (puts in particular, I think) are always too risky and we, lowly individual investors, should never ever sell such because it will almost inevitably turn sour because we are betting against market makers who by virtue of their position always have better information.
I am not sure I said those or implied. My point was this particular stock, at this particular time, selling puts is not an optimal strategy. If you are convinced the allegations are false and the stock will bounce back, you should have bought a call, limit your risk, and set up yourself for the bounce back, and if it does, probably you will be looking at many times of your investment.
With put selling, you are setting up yourself to a significant downside exposure for a limited premium on a volatile name at the time of fraud allegation. The reason many investors sell puts, instead of buy calls is that they think put premium is free money. Which is false and most investors don’t understand enough about risk, probability, etc to make a proper evaluation of whether they are receiving enough in premium for the risk they are taking.
I think this is a topic I should avoid in future. In another board someone mentioned Motley Fool actually encourages people to think put premium as a free money, I am paraphrasing or my understanding of what he said could be wrong. Buf if the party line is to treat put premium as free money, no amount of my posts is going to change that perception.
I know I started this thread, but 31 posts on the subject of Andrew Left and Citron is really wasting our time and cluttering the board. I think everyone has already said what they feel impelled to say on the subject. LET’S DROP IT and move on.
It is strange that you choose not the last post on the thread and another thread on UBNT seems to be running even longer and you have no problem with that. In any case, I am done talking about this.
