Short Seller Whining
I’m at an interesting position in my Crystallex (AMEX:KRY) trading. I’m thinking of making a $3 to $3.50 trade on the stock. I still own a core position, which is sitting tight until permit time.
Okay, I’ve setup the trade. Bought 1500 shares at $3.02 with a tight stop at $2.96. With a target of $3.40, I’m risking 6 cents a share with a chance to make 39 cents a share, or 6.5x my risk.
There has been an increase in the number comments I’m seeing at the Google Finance discussion group for KRY. Some folks will come in and talk about how Chavez is a communist and he’s going to take all the profits from the Las Cristinas mine. Then some folk come in and accuse them of being short. And they bicker about whether the stock will go up or down.
Here is a link to ShortSqueeze.com for the short interest in KRY. Looks like 2.86% of float, down 11.4%. Not sure what the time frame is on that 11% change.
So I see two things happening here. (1) Potential shorts are writing negative comments on boards. And (2) people who are potential longs are accusing any negative commentor of being short.
It’s (2) that really scares me. Less and less I’m seeing cogent defense of the stock and more short-bashing. “Well, you’re just short the stock. That’s why you’re saying that.” Is this a trend in sentiment I should take notice of. It seems to me that we’re seeing more casual investors long in this stock, which could mean that (a) the stock has become too popular and (b) these casual investors are going to run at the first hint of another big pullback.
What do you guys think? Have you ran into anything like this before?
6 Comments Add your ownSubscribe
1. Christian Gross | January 18th, 2007 at 3:02 pm
Before I comment did the stop loss trigger?
2. Jason | January 18th, 2007 at 3:20 pm
Yes, and no slippage. I was very proud of E*Trade.
3. Jason | January 18th, 2007 at 3:24 pm
KRY took a huge hit on some “news”. Traded as low as $2.22 today.
- I saw KRY on the CNBC ticker while eating lunch: $2.30.
- Raced to my computer. Checked the stops. Executed correctly.
- Checked that it wasn’t the end of the world. Nope.
- Decided to buy KRY on the swing up. Locked in a 1500 share position at $2.55.
End result (it’s not the end of the day yet, so I’ll update if things change):
Lost some on that first trade setup.
Made that back by selling 900 shares at $2.80.
Now I have a 1500 share position at $2.80 or so instead of a 900 share position at $3. I still think the stock is turning around.
4. Christian Gross | January 18th, 2007 at 4:45 pm
This is my personal opinion. I would not invest in anything related to Chavez. I talk at lengths with my sister and she tells me the things going on with Chavez and I don’t like it.
If I had to trade KRY I would do so with hedging or like you did with very tight stops.
5. Soma to florida.&hellip | June 9th, 2007 at 7:29 am
Soma to florida….
Soma to florida….
6. Phentermine 37 5mg.&hellip | June 9th, 2007 at 1:56 pm
Phentermine 37 5mg….
Phentermine 37 5mg. Phentermine 37.5mg….
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