cloverleaf wrote: jfs1000d wrote:
Bankruptcy is apparently a real possibility for GE.
GE isn't going to go bankruptcy. Power is killing them and they are loaded with debt from their bad deals there. They have to write down their debt. They already wrote off a ton of that deal.
That report last week was BS. Their are thoughts that the guy who said there was fraud and that GE was headed to bankruptcy did that to benefit a shortseller. The SEC is going to investigate. Markopolos disclosed that an unnamed hedge fund paid him for access to his GE report before it was released, revealing that he will be paid through a percentage of the trading profits. Asked about the potential conflict of interest, he told CNBC "I need to get paid. I have a family to support."
Nice people to knockdown the stock 11 percent so the shortseller can hit his mark. SMH. The stock market is the big fraud. I would be more worried that GE gets bought, breaks up, or merges and spins off than bankruptcy.
Charles Ortel is not in it for short-selling or payoffs.
People are posting as if shortselling is something deceptive or bad. Wrong. It's a perfectly reasonable tactic, if you think a stock is selling for more than it's worth. The closest thing to exceptions to that observation are probably:
-- The whole stock market has a regulatory doublethink along the lines that you trade based on superior information and understanding, but there's something unethical about having superior information and understanding. Short-selling cases like this one are probably more visible and spectacular than cases of buying long based on superior knowledge. That said, I've made 3-10X on long investments multiple times, whereas the biggest possible gain on a short sale, by definition is a 100% return on your money.
-- If you wanted to cause a QUICK fraudulent move in the market, and you somehow thought you could conceal your actions from regulators, it's easier to cause a sudden drop in a stock than a sudden spike.
And by the way -- one of the best pieces of investigatory "journalism" I've done in my career (this was 25 years ago) started with a short-seller's tip. The guy had figured out that Sybase System 10 was horribly buggy. I broke the story; Gartner Research got wind of my work and piled on; Sybase threatened us both with libel actions; we told them to stuff it; and the company crashed accordingly.