Virgin Galactic SPCE has successful test flight now known hedge fund posting negative commentary on company. WHY?

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Thread locked since went off-topic.

greytoc

Did you actually read the article? It’s long and detailed. Instead of asking why they posted it, why not refute their conclusion? What did they get wrong? As far as I can tell, your positive outlook is based on a successful test flight. The article talks about a lot more than that.

irresponsible_owl

Some people seem to think the process is: Short stock -> Write mean things about company -> Stock goes down -> profit. Really though its more like: Do fundamental research on company -> Decide it’s wildly overvalued and/or fraudulent -> short stock -> write articles trying to convince people of your viewpoint -> stock goes down -> profit. You don’t risk your fund’s money on the bad risk/reward profile that is shorting unless you truly believe that it’s a bad stock.

turned_into_a_newt

You’re wondering why an investment firm would release a negative report about a company they have a short position on?

flextrek_whipsnake

Selling dreams to dumb money. The way the great orater of Ontario Chamath Palpatine was promoting this 24×7 on CNBC, you knew he was trying to sell $hit to anyone watching. This thing has an annual revenue of less than 250k dollars. $250k. That’s half my wife’s salary. To top it all, after all the talk about how much he believed in this “one of a kind oppertunity to invest in space travel”, the biggest promoter of this thing sold a big chunk of his postion in December and March “to fight climate change” after he said a month earlier that he wouldn’t sell a share of it if he didn’t have to.

programmingguy