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Varchild2008 (85.88)

Varchild "Redeemed" regarding AgFEED Industries: Naked Short Selling?

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August 25, 2008 – Comments (5) | RELATED TICKERS: FEEDQ

Turns out I was dead on correct to increase my stake in (FEED) from 187 shares to now 276 shares.  I kept buying and buying the thing all the way down to $10.75.  I still have some cash set on reserve if the share price keeps plummeting.

AgFEED Industries reports today that they filed a report to the SEC concerning their share price receiving Naked Short Selling action. *Yikes*

But, not a surprise!  I suspected that and said so on Scottrade's Community Forums last week when I pointed out the unusually large short, share volumes on this particular stock via www.pinksheets.com.  That website provides 15 day increments of short selling volumes for stocks.
I highly recommend that website whenever you are scratching your head over why your stock is falling.

In the era of Naked Short Selling.... It can be tough to keep up your spirits and to not panic.
Personally, I panic all the time.  It's my nervous nature.  But, I follow Jeremy Siegel's behavior science chapter on investing in knowing that when you have a good quality company and the share price is falling then that's a buying opportunity.  It is not a time to panic and sell off your stake.

5 Comments – Post Your Own

#1) On August 25, 2008 at 8:40 AM, Varchild2008 (85.88) wrote:

However, it turns out I may be mistaken in my ignorance regarding what exactly occured in April when the stock rose to $20 a share.

As I recall AgFEED bought Hog Farms at that time and they funded it through some means regarding their stock.

This stuff is confusing because the news article I have reads:

http://biz.yahoo.com/iw/080428/0390814.html

It says a direct offering of shares to investors gave AgFeed $10 million.  Maybe I am mistaken about the meaning of this type of transaction.  Frankly, the news article on this doesn't clarify.

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#2) On August 25, 2008 at 8:41 AM, Varchild2008 (85.88) wrote:

However, it turns out I may be mistaken in my ignorance regarding what exactly occured in April when the stock rose to $20 a share.

As I recall AgFEED bought Hog Farms at that time and they funded it through some means regarding their stock.

This stuff is confusing because the news article I have reads:

http://biz.yahoo.com/iw/080428/0390814.html

It says a direct offering of shares to investors gave AgFeed $10 million.  Maybe I am mistaken about the meaning of this type of transaction.  Frankly, the news article on this doesn't clarify.

Report this comment
#3) On August 25, 2008 at 8:44 AM, Varchild2008 (85.88) wrote:

However, it turns out I may be mistaken in my ignorance regarding what exactly occured in April when the stock rose to $20 a share.

As I recall AgFEED bought Hog Farms at that time and they funded it through some means regarding their stock.

This stuff is confusing because the news article I have reads:

http://biz.yahoo.com/iw/080428/0390814.html

It says a direct offering of shares to investors gave AgFeed $10 million.  Maybe I am mistaken about the meaning of this type of transaction.  Frankly, the news article on this doesn't clarify.

Report this comment
#4) On August 25, 2008 at 8:47 AM, Varchild2008 (85.88) wrote:

http://biz.yahoo.com/iw/080423/0389583.html

They did make a sale of common stock shares back in April (See news article above).  Unless the story got it wrong...

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#5) On August 25, 2008 at 8:48 AM, Varchild2008 (85.88) wrote:

http://biz.yahoo.com/iw/080423/0389583.html

They did make a sale of common stock shares back in April (See news article above).  Unless the story got it wrong...

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