Alec Hogg: The Reddit Trading Mob are targeting financial pros – and winning big

Kevin Shames of Bright Light Solar (above) visited us yesterday for an interview ahead of Monday's kickoff of the company's R50m capital raise. With a 19%pa after-tax return and the possible end of SA's 12J tax incentive scheme which makes it possible, feedback from our community suggests Shames should expecting brisk demand on Monday..Also read: Alec Hogg: Covid cloud's silver lining.By law, the amount of equity on offer cannot be increased. Covid-19 has contracted the capital raise to R35m less than each of the past two years. Shames says once the R50m has been reached, the offer will close. So if you want in, best to fill in the forms over the weekend and get the transfer done..After the interview, Kevin shared the latest drama on Wall Street where small investors are giving professionals a rogering (see WSJ story below). Banding together through social media, they target bombed-out companies where the pros have large short positions – selling stock they don't own in anticipation of profiting by later picking up the shares even cheaper..___STEADY_PAYWALL___.Also read: Alec Hogg: How to buy Xero shares.These small-timers have turned traditional practices on their head. Their collective buying sends prices surging forcing pros to cover their exposure, adding jet fuel onto an already raging financial fire. This week alone, short-sellers have lost tens of billions of dollars. Shames, former chairman of the SA hedge fund association, believes it to be a watershed for investment markets. Having operated in the heat of that battle for four decades, he should know..NB FOR YOUR WALL STREET JOURNAL ACCESS….Because of The Wall Street Journal's credential requirements to access its site, your password MUST be at least 8 characters and include at least one letter and one number; and it MAY NOT contain any special characters (ie #, !, @ etc). To maintain access to WSJ.com, you MUST enter our partner's website at least once a month via BizNews Premium.TO LISTEN….Latest audio on BizNews Radio.…..(click on the link to access).Man who called 2008 Crash – "This is one of biggest bubbles ever" Carrie's Corner: VinPro's Mogase – why we're taking Govt to court First come, first serve for this exciting 12J opportunityAwakening SA's sleeping university technology giant – StocksCEO Bob van Dijk: Naspers seeking to ease JSE dominance Flash Briefing: Vaccines coming to SA; 1500 new jobs at Toyota

Alec Hogg: The Reddit Trading Mob are targeting financial pros – and winning big

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