Quote:
Originally Posted by 3klipze
Dafonz , just wondering what your opinion is to not go long on TRE ? The accusation of TRE by MW is most likely false since they are in the short position , wanting to push down the shares to gain profit . You seen to give one sentence answers on it being "retarded" , but without and discussion .
We will just have to see once the investigation starts and the real deal is released.
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The sentiment towards chinese RTOs is already decidedly negative so the shorts will look for ANY reason to kill a stock.
There are two possible outcomes here:
- TRE is proven to be a fraud in which case the price tanks more.
- TRE is proven to be ok. In this case, the stock price may or may not recover (see ONP as an example).
The risk reward ratio just isn't there for going long. Just look at the price action the past couple of days. You definitely wouldn't want to be caught on the wrong side of those swings.
Whether or not muddy waters is short the stock is really quite irrelevant because it's the market sentiment that matters.
If you decide to go long TRE (vs scalping it intraday), then you are a far braver person than me.