{"id":86943,"date":"2009-12-17T13:05:00","date_gmt":"2009-12-17T18:05:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/henry-blodget-outrage-of-the-day-idiot-company-retaliates-against-shortseller-in-innovative-new-way-2009-12"},"modified":"2009-12-17T13:05:00","modified_gmt":"2009-12-17T18:05:00","slug":"outrage-of-the-day-idiot-company-retaliates-against-shortseller-in-innovative-new-way","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/86943","title":{"rendered":"OUTRAGE OF THE DAY: Idiot Company Retaliates Against Shortseller In Innovative New Way"},"content":{"rendered":"

\"AngryCouple\"<\/p>\n

A respected institutional investor sends the following note describing an innovative new way an idiot manager is punishing him for betting against the company.<\/p>\n

For what it’s worth, based on our years on Wall Street, the investor is exactly right: The stronger the reaction from the company, the more they’re hiding and the more likely the stock will crash.<\/p>\n

One of the headaches (joys?) of being a short seller is the occasional (frequent?) vitriol from companies – and my experience is that the stronger the reaction from the company, the more they’re hiding and the harder the stock will crash.  <\/span><\/p>\n

For example, I found out recently that the CFO of a company we’re short told his child to end the friendship with my child because of what I’d said about his company.  I am not making this is up – it’s psycho on so many dimensions!  <\/span><\/p>\n

Incidentally, we immediately shorted more, not in anger but because: <\/span><\/p>\n

A) How bad must things be at the company if the CFO is so freaked out by a few passing mentions that we’re short his stock to react this way?; and <\/span><\/p>\n

B) Knowing that a company has a psycho CFO makes it an even higher-conviction short.<\/span><\/p>\n

 <\/span><\/p>\n

Join the conversation about this story »<\/a><\/p>\n

See Also:<\/b><\/p>\n