$Arm Holdings (ARM.US)$ Can I short the position? But I'm af...
$Arm Holdings (ARM.US)$ Can I short the position? But I'm afraid it will rise again.
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razo2 : what is the point of shorting this stock when SoftBank controls 82% of this stock?
rq2jg488 OP razo2 : Thank you
Chris Ivan Ang razo2 : So many shares of SoftBank have been shorted into oblivion. So don’t bet on this one not being shorted either.
razo2 Chris Ivan Ang : yeah, I know they are doing bad. but this one they have full control over it. just some basics to short a stock so people can understand not to buy the options or directly short it.
Chris Ivan Ang razo2 : I’m not sure if SoftBank owning a 90% stake is actually a good thing for the company. Means that the float is controlled hence no volume also….
razo2 Chris Ivan Ang : they deliberately do this. so china cannot buy the 10% or more into the company. there is an ongoing chip war between US and China. if china buys in major shares it will allow them to access certain things in the company.
Chris Ivan Ang razo2 : That’s not how it works. And the basic problem with China and chips is they can’t get the lithograph machines to make the chips in the 1st place. If SoftBank continues to float only 95.5m shares against 1.05Bn it creates no incentive to own the shares. Secondly, SoftBank can use share collateral pledging on projects outside of ARM that may put the value of the company at risk not from performance but by mismanagement of debt obligations.
razo2 Chris Ivan Ang : trust me it does work that way. you are able to see certain things. not full IP but good enough for them to send people there to snoop around, that is good enough for china. if they buy 10% or more of the company they have a voting rights into the company policy. and the fact US and UK knows China will not be asking politely for those information. likely as an espionage attack.
Chris Ivan Ang razo2 : By your logic, the 10% available now can be bought up already
.
razo2 Chris Ivan Ang : not exactly. the rest of the 17% is owned by alot of other people as well like Nvidia, Google. so china practically don't have much to even try. they deliberately do this. let's be honest here, if you play meme stocks you know how much dirty tricks they have under their sleeves to generate more money for the company. you can see their ARM books it isn't looking good for them they certainly need to raise cash for a reason.
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