What To Do If You Own A Stock Subject To A Short Attack

Source: Pixaby

A few weeks ago, one of my Dividend Hunter recommended stocks was the target of a short attack press release. The company has a stable, profitable business. The small market cap becomes the main appeal to short sellers, making it easier to manipulate the share price.

Here’s how to tell if the short attack is legitimate – and how to act accordingly…

Arbor Realty Trust (ABR) is a finance REIT that caught the eye of short-sellers. The recent report was the second such attack on the ABR share price this year.

A report titled “Arbor Realty Trust – Slumlord Millionaires” was published by an outfit called Viceroy Research. The report scared ABR investors, and the stock price shed 12.5% in a few days.

A short-selling outfit like Viceroy will have established a short position in the target stock before they publish this type of article.

Here are some clues a negative report on one of your stocks is an attempt by a short-selling firm to drive down the share price…

This post originally appeared at Investors Alley.

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