RE: Threshold stocks --- You`re both right (I think) - Geoff
posted on
Jan 05, 2005 01:52AM
It`s a very sad statement about the state of the financial sector. And it`s a very sad statement about investors in general.
I may get some flack for this; but, I suspect that new rules and enforcement actions require a great deal of deliberation and debate. Why do I say that? Are not many hedge funds tied into the trading of many different stocks, including Nanopierce? Do these companies bet with short positions, as well as long positions. Are hedge funds not components of larger funds?
My point is that questionable dealings by some traders and funds are somehow made legitimate because their identities and motives may be shielded from the average investor. That`s not a problem to the average investor... as long as the returns are positive. But, should the government enforcement agencies` actions result in reduced gains, or even losses for the legitimate funds, then the investing public would cry foul.
Because the financial markets, and their offerings, are so complex, it is understandable that many average investors move into funds. I`m not faulting anyone for doing so. But, because the investors seek the highest of returns, and because some fund managers don`t really see things as black and white, I believe that many average investors have actually bought into a program that has supported these questionable dealings for quite some time. And now, I think it is too late for the governmental agencies to do anything to really right the situation for the companies and the investor who were hurt the most... people who believed in small companies who needed our support.
I personally have trouble understanding how an imbalance any company`s stock could be left that way for an indefinite period of time. And as you so rightly put it, I believe that the bashing will continue as these still short entities bash even harder... their worries and responsibilities will end as soon as the focus of their attack goes bankrupt.
It is for reasons such as the complex nature of the fund market, and the questionable objectives of some fund managers, that I have never invested in any type of stock fund. And, after what I have learned about bulletin board stocks, I seriously doubt I will ever invest again in such a risky venture. I guess I thought this was a good place to ``invest`` money; but, I think it has been proven only to be a good place to ``trade``.
I may change my opinion; but, only if all of the trades are settled. If allowed to remain open indefinitely, I see only bad things for investors like those of us here.
What a sad statement. It`s no wonder that so many feel so disappointed.
If there were any way for it to gain traction... I would surely promote, and support, a boycot against all companies directly, or indirectly, involved in making money through previous naked shorting deals. But... I think the Crusades took place many centuries ago, and it would probably be very disappointing to put any kind of emotion into thinking that we could do any good for a ``cause`` in the face of so many others who don`t really care how their gains were made, and not anything about those who were hurt in the process.
All my personal opinion.
Jeff