Andrew Left's (Citron) trading in TSLA
- Thread starter freedinner
- Start date
So now the question becomes, how the Fuck are these guys able to move stocks like that other than a self fulfilling prophecy?
Honestly i thought Citron were heavy hitters cause they always create a shitstorm, based on their tweets, but this seems hilarious, 3 million dollar positions? I had like a 600k position in NKE the other day and im a piker.
The headline news on this one is "Citron is not a hundred million dollar company" and definitely not a billion dollar company, Not even close, its disappointing but not surprising.
Not sure this tells us much about Citron position sizing in companies they write about, especially before publishing an article. Several 3 to 6million opportunist day trades on a single stock don't look like piker moves, I suspect their better planned positions are significantly bigger.
Also agree with the following, although i'm surprised Musk can (can he ?) get away with such misleading and market moving tweets
" I guess it will be difficult for him to prove that these trades have been due to the changing news from Tesla and Musk, as opposed to simply a reaction to price changes"
He'll lose money and maybe also his job.
It seems that every law firm in the country that is in the securities class action business has filed a lawsuit against Musk and Tesla. Left's is just one of them. I guess there's no shortage of people that have a valid claim against Musk, either because they were short and chickened out to cover after the tweet, or because they went long believing that the price would go up further with the "secured funding". I just don't think that Left is a good choice as lead plaintiff, given his frequent and two-sided trades after the tweet.
These lawsuits will be consolidated but it can still take 2-3 years until there's a verdict. Maybe the SEC is quicker mandating some kind of remediation action. Maybe even forcing Musk's removal as CEO if the board doesn't act first?
Right. But even looking at Citron's list of reports / announced positions at https://citronresearch.com/citron-report-archives/ , you can't help but notice some serious style drift in the last few years. He used to work exclusively on the short side, exclusively uncovering frauds (not merely overvalued stocks), maybe just 5 per year. These days, he's all over the place, short and long, sometimes focusing on valuation, sometimes on long term potential, sometimes on a quick trade.
WTF is up with their trades? Musk will be luck if he's not in an orange jumpsuit. I like his style though