Earlier on Wednesday Porsche had denied all responsibility for the recent market distortions and short-seller squeeze.
On the other hand, long-term holders of the shares also benefit when the bearish short-seller's negativity is warranted.
Saxe speaks with particular venom about short-seller Manuel Asensio, who is not shy in critiquing stocks he rates overpriced.
McCain also criticized Mr. Cox for eliminating a trading rule that acted as a speed bump to prevent short-seller from pounding a stock.
WSJ: McCain Says Cox Should Be Fired As SEC Chief Amid 'Casino' Markets
Nonetheless, Chanos discussed what was required to be a successful short-seller, which included accepting that the conventional wisdom about a stock is wrong.
Instead I constantly read the work of bears like the hedge fund short-seller Jim Chanos, to see if they see something that I miss.
In fact, if Metzler is getting a 13% annual fee on NovaStar, then Smith Barney is probably charging the short-seller a bit more than that.
Citron is treading the same path as short-seller Muddy Waters, which scored a bullseye in exposing fraud at Toronto-listed Sino-Forest, and more mixed results elsewhere.
FORBES: Chinese Property Developer Evergrande Slumps After Website Claims Fraud
He will present his best investment idea for this year, as will fellow short-seller James Chanos of Kynikos Associates and activist William Ackman of Pershing Square Capital, among others.
Such share discrepancies can result from innocent errors or from something more: naked short sales of Pegasus stock, meaning a short-seller has not properly gotten dibs on shares to borrow before selling.
The rules currently give a buyer's broker the option--but not mandate--to buy-in the short-seller's undelivered shares--that is, purchase the undelivered shares in the market and charge the seller's broker the cost of doing so.
Assuming the possibility that the short-seller's bearishness is unwarranted--which is a lot of the time--the seller, seeking to avoid losses on shares sold short, must re-enter the market in order to buy back the shares at a loss so that they can be returned.
If there's a silver lining to the SEC's silly decision, it's that markets are global, and if U.S. regulators are too immature to understand the importance of price discovery and the short-seller's role in it, other global markets will take the trading volume that our SEC intends to repel.
Ambac shares have lost 90% of their value since January 2007 and William Ackman, a short-seller who runs the hedge fund Pershing Square Capital, has railed against them (to his own benefit), saying the bond insurers could be insolvent by the second quarter because of their exposures to the structured finance market.
Predictably, short-seller advocacy groups lamented the toughness and cost burdens of the new regulations, under which a trader wanting to short a particular stock has to find a price above the prevailing national best bid and offer price if the stock has already fallen 10% or more from the previous trading session.
FORBES: SEC's New Circuit Breaker Falls Short Of Uptick Rule
The SEC should be criticized severely for doing away with the uptick rule on short-selling--no shorting of a stock unless it has moved up in price--and for its failure to enforce rules against naked short-selling--requiring a short seller to first borrow a stock before he shorts it.
Chief cheerleader in this self-serving effort has been Steve Eisman, a prominent short seller who contends that for-profit colleges, much like subprime lenders, sucker the poor and uneducated into borrowing more money than they could ever pay back.
The Securities and Exchange Commission accused the firm of failing to disclose the role of a short seller in constructing a pool of mortgage-related assets sold to investors.
Sino-Forest tumbled in June after Carson Block, a short seller, said the company exaggerated its timber holdings.
FORBES: Sino-Forest Eyes 'All Options' For Shareholders, But Doubts Persist
The company supplies components for Apple Computer's iMac, a hot seller in the U.S. But Bernard Tan of Merrill Lynch has downgraded NatSteel's short-term rating to neutral, although he still has a long-term buy on it.
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