1. Xuexiang Hu's Avatar
    today I want to unveil how hedge funds trade blackberry stocks, this is the story:

    Suppose only 2 big hedge funds(A and B) have interest in bashing blackberry stocks, they are rich and have massive cash like couple of billions. Me and the rest individual D say like 10000 blackberry investors all holds 100 shares of bbry stocks, and those shares are all stored in the broker C. At a random day, bbry price is 15.00. Hedge fund company A and B bribe some analysts to publish fault or bias article to bash blackberry's products; then A starts to borrow shares from C(it is not C's shares, it is D's) and dump those shares to the market, now massive sold cause bbry price to drop ( say 13.00), some D found price drop dramatically with bad news and panic to dump their shares which moves the market further down (say 12.00). Now B comes out to catch most of the shares at already fair low price (12.00), since B and A are buddies, B return all shares to A by transferring position and pay at price 12.5. Now A return all the shares he borrowed from C and pay some interest. At the end of day, A makes [(15-12.5)*10000*100 - (Commission interest to C)] , B makes 0.5*10000*100 , C makes Commission interest from A. Some D lost (1~2)*100 , and most of D fail to react lost (15-12.5)*100.
    redantz, plane6065 and Acumenight like this.
    04-27-13 01:48 AM
  2. redantz's Avatar
    very interesting, thanks
    04-27-13 02:07 AM
  3. toisanwu's Avatar
    Thanks for posting this interesting topic. The thing that may no be obvious is that shorters need to borrow shares before they can short the stock. Small investors need to find a way to stop their brokers from loaning out their shares. But how? I've been asking that question myself. A bit of Googling showed the easiest way is put an extreme out of the money sales order so the broker must have your shares ready in case the price spikes. Following OP?s example, if current price is ?15.00, put the sale price at 20.00 or as high as your broker allows. The downside is that you might actually got taken out?

    I don't know if brokers would actually do that. Perhaps someone who knows could elaborate ? Small investors need to work together to stop those shorters by taking back ownership of the shares.

    I apologize if the OP intended with a follow up on this topic. I feel I needed to share it ASAP.



    Posted via CB10
    04-27-13 07:46 AM
  4. mikeycollins13's Avatar
    Apparently listing your BBRY shares for sale, sat say $1000, recalls the shares.

    If that is the case, its rather easy.
    04-27-13 07:33 PM
  5. Xuexiang Hu's Avatar
    Apparently listing your BBRY shares for sale, sat say $1000, recalls the shares.

    If that is the case, its rather easy.
    yeah, if every investor does that, basher can't borrow shares from broker. Unfortunately, only few of them knew it, and even knows it, less of them put their shares in GTC(good until cancel) order at a high price. so for bbry, I never follow the market to buy, rather buy at rumor news low and sell on good news high. Plus blackberry lacks a rich supporter who can sweep the market when fault news comes out, and that will cause short squeeze when good news come out.
    Last edited by Xuexiang Hu; 04-28-13 at 08:48 AM.
    04-27-13 11:35 PM
  6. mikeycollins13's Avatar
    today I want to unveil how hedge funds trade blackberry stocks, this is the story:

    Suppose only 2 big hedge funds(A and B) have interest in bashing blackberry stocks, they are rich and have massive cash like couple of billions. Me and the rest individual D say like 10000 blackberry investors all holds 100 shares of bbry stocks, and those shares are all stored in the broker C. At a random day, bbry price is 15.00. Hedge fund company A and B bribe some analysts to publish fault or bias article to bash blackberry's products; then A starts to borrow shares from C(it is not C's shares, it is D's) and dump those shares to the market, now massive sold cause bbry price to drop ( say 13.00), some D found price drop dramatically with bad news and panic to dump their shares which moves the market further down (say 12.00). Now B comes out to catch most of the shares at already fair low price (12.00), since B and A are buddies, B return all shares to A by transferring position and pay at price 12.5. Now A return all the shares he borrowed from C and pay some interest. At the end of day, A makes [(15-12.5)*10000*100 - (Commission interest to C)] , B makes 0.5*10000*100 , C makes Commission interest from A. Some D lost (1~2)*100 , and most of D fail to react lost (15-12.5)*100.
    Permit me to change this for you; It is actually much simpler:
    Hedge fund a is legally allowed to commission research from say someone like, Pacific Crest.
    Little known fact 1: Pacific Crest is a marketmaker in Blackberry
    Little known fact 2: Market-makers do not have to borrow or locate in order to short. They can, legally short sell, 'naked' at will

    So marketmaker (Pacific Crest for example's sake) can sell 5 million shares of BBRY in 2 minutes; 'Bear raid' - this triggers stop losses and High frequency trading to push BBRY down further.
    -They then buy back 5Miilion shares at a LOWER price after the panic throughout the day.
    -This makes research appear 'credible' as market appears to have reacted to it, causing more selling. A positive feedback loop between Bear raid and dubious research.

    Rinse and repeat every couple of days and grind it down.
    05-09-13 05:25 AM
  7. onvisa's Avatar
    So the SEC must change this.
    05-10-13 09:36 AM
  8. Hill Zhao's Avatar
    There is ways to stop the short seller by asking your broker to deliver the stock certificate to you, then the short seller will be forced to buy in which means they need to buy the stock at current market price and return it to the shareholders.

    Posted via CB10
    05-10-13 08:57 PM
  9. FunGuyLover's Avatar
    Does anyone just do business anymore, putting out better product and selling more of it at a higher margin than the competition?

    Posted via CB10
    05-10-13 10:42 PM
  10. sparkaction's Avatar
    Permit me to change this for you; It is actually much simpler:
    Hedge fund a is legally allowed to commission research from say someone like, Pacific Crest.
    Little known fact 1: Pacific Crest is a marketmaker in Blackberry
    Little known fact 2: Market-makers do not have to borrow or locate in order to short. They can, legally short sell, 'naked' at will

    So marketmaker (Pacific Crest for example's sake) can sell 5 million shares of BBRY in 2 minutes; 'Bear raid' - this triggers stop losses and High frequency trading to push BBRY down further.
    -They then buy back 5Miilion shares at a LOWER price after the panic throughout the day.
    -This makes research appear 'credible' as market appears to have reacted to it, causing more selling. A positive feedback loop between Bear raid and dubious research.

    Rinse and repeat every couple of days and grind it down.
    Do you have a link to a report citing that market makers may naked short sell?
    05-10-13 10:47 PM
  11. Xuexiang Hu's Avatar
    05-11-13 04:58 AM
  12. mikeycollins13's Avatar
    The SEC enacted Regulation SHO in January 2005 to target abusive naked short selling by reducing failure to deliver securities, and by limiting the time in which a broker can permit failures to deliver.[27] In addressing the first, it stated that a broker or dealer may not accept a short sale order without having first borrowed or identified the stock being sold.[28] The rule had the following exemptions:
    Broker or dealer accepting a short sale order from another registered broker or dealer
    Bona fide market making
    Broker-dealer effecting a sale on behalf of a customer that is deemed to own the security pursuant to Rule 200[29] through no fault of the customer or the broker-dealer.[28]
    Shanerredflag likes this.
    05-11-13 07:48 PM

Similar Threads

  1. anyone from Cellular South about to trade up
    By luvitlo in forum Other US Carriers
    Replies: 6
    Last Post: 11-23-08, 11:21 PM
  2. Looking To Trade For Curve
    By mr. brady in forum BlackBerry Curve 83xx
    Replies: 2
    Last Post: 11-09-08, 05:09 AM
  3. Replies: 2
    Last Post: 10-16-08, 10:12 PM
  4. Replies: 3
    Last Post: 06-26-08, 04:15 PM
  5. anyone ever want to trade my pearl for a curve let me know
    By Sensesfail99 in forum Verizon Wireless
    Replies: 1
    Last Post: 06-04-08, 07:42 AM
LINK TO POST COPIED TO CLIPBOARD