Thursday, August 16, 2007

In the past 8 days my companies stock (PCP) has lost $25.89 off it's share price.

For no reason. I don't care that hedge funs are selling off any liquidity in order to cover themselves as they were heavily invested in real estate holdings. Why aren't they regulated? Why are they allowed to play their own private games with stocks?

Hedge funds don't make most of their money when a stock goes up. They make most of it when it goes down. They short millions of shares, drive down the price of a stock, re-buy it later at a much lower price, and then reap the rewards. Companies stocks pay the price, and often there is no legitimate basis for the drops.

Take our stock for example. We've blown past analyst estimates by more than 10% for 17 consecutive quarters. That sounds like a pretty safe bet. So how to explain losing $25 over a week period? There is no answer except for panic selling and hedge fund manipulation.

It's time to regulate the mothers.


plang said...

While the hedge funds don't help, there are a lot more reasons for the current slide. My company's stock is taking a hit too, but "only" $4 off the price after a very good quarterly update. A lot of this right now has to do with the mortgage issues and fears that with the housing market hitting rock-bottom there will be a lot less free cash for use and people will quit spending.

J Money said...

Pcc Airfoils should bunt.