Shorting stocks - Mark Cuban’s view
Mark Cuban gave a great summarization of why shorters are great for the company:
The more shorts, the more shares shorted, the more pent up demand there is for the stock. For a company that is well run and operationally successful, short shares are like an insurance policy to protect the downside for the price of your stock and more likely push the stock price ever higher. When we had broadcast.com I used to beg people to short our stock. If they didnt like what we were doing I would actively suggest to them that they short the stock. Sure, it might have slowed the rise of the stock in the short term but who cared. I knew we were going to be able to hit our numbers, so why not. If we did our jobs, it just meant they would have to cover the stock and in a down market, that helped keep the price up and in an up market, that could cause the stock to run. Both very good things.