Comment by CydeWeys
4 years ago
And they're short selling this position because they have good reason to believe the stock price is severely overinflated due to fraud. If what they're saying is true (and they provide lots of evidence) then this company is basically worthless.
Short sellers take positions because they believe stocks are overvalued, at least in the short term, and at least can be made to look that way with sufficient negative marketing. When they share their market research with lots of adjectives, but oddly do not share any of the positives that a company may possess (and why would they?), then any investor acting on that one sided information has possibly done himself a significant financial disservice.
>oddly do not share any of the positives that a company may possess
Oddly? It's not the job of the investors to champion for the company. The short seller presented a report with research and evidences. Another party is welcome to produce their own report that 'share any of the positives that a company may possess.' For example, Nikola.
Let the company presents its side of the story, then it's up to the market/public to decide whether the reports stand on their own merit.
There are plenty of legitimate short sellers, and there are scumbags as well. Why _wouldn't_ they share the resesarch? Of course they're biased, they hold a position. Everyone knows that. It doesn't make them wrong.
Sure, and what are the positives specific to Nikola?
I hold no position in Nikola. Positives include them working in an area with potential large upsides, specifically trying to develop the use of Hydrogen where it's a good fit today, in long haul trucking. Future great places for it include shipping, sporadic power generation storage (wind and solar), etc. Batteries improve steadily, but so far nothing proven scalable and affordable doesn't involve significant amounts of limited lithium, meaning alternatives to battery systems are worth pursuing.
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