Q: These are just "my observations" of the current Canadian market place. It appears that any small cap or medium cap company with little or zero cash flow is being crushed by the large number of short sellers (SS) circling in the sky. The (SS) just continue to build their short positions until the company is out of money and then when it finally succumbs to raise funds with a low share price the SS are the buyers, leaving those original share holders with a much smaller value. Until the rules for short selling are revised I see no real reason why this approach will change. This occurrence doesn't happen to the same extent on large cap stocks because of the expense and the number of individuals and institutions looking to "go-long" to receive dividends. Now for my question - Do you think my observation is true or false? Why or why not?
Sincerely,
ANDY
Sincerely,
ANDY