Doomsday for short sellers you have 2 trading days to get out, i figure there's a big surprise in da numbers i say 100 in revs and 1 cent earnings, and shorts will really not like the forward guidance for the next 2 quarters THE SHORT SELLERS FEET GO INTO FIRE WE LONGS WILL ALL SEE HOW MUCH PAIN YOU CAN STAND, just returning the pain to the shorts they caused all long side investors for the last 5 years.
By "analysts" you must be referring to convicted felon Hunter Clark, who did time in federal prison for bilking investors out of $50 million and now runs a reverse pump and dump operation called TheStreetSweeper. In actual fact, Lightpath is covered by a REAL analyst, Taglich, that has a "buy" rating on the stock.
According to analysts, LPTH is not a good company to invest in. Too many pumpers pumping this stock and no institutional ownership.
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Google, which investors feared would further cut spending given its new CFO intended to be more “prudent” with certain investments, created some mid-2015 concerns that capex spending would slow dramatically. Microsoft’s capex was also front-loaded and it appeared that many of the big investments were finished. Apple was gearing up to build just one large data center. On the other hand, Facebook’s and Amazon’s spending meaningfully increased into 2H. We expect more normal seasonality from the Cloud providers heading into 2016 given their investment requirements. On an annual basis, we model a resumption of capex growth in 2016 led by the largest Cloud customers, Google (Alphabet), Amazon, Microsoft and, to a lesser degree, Facebook.
The growth in Cloud spending and the migration of demand from Telcos and enterprises to Webscale customers is creating winners and losers in the SMID Cap Comm Equipment space. We prefer companies heavily exposed to growing areas of IT spending shifting to the Cloud from Enterprise / Telco capex that isn’t keeping pace with growth of Web 2.0 spending such as Arista (Webscale switching / networking) and Infinera (Data Center Interconnect) vs. Brocade (SAN Storage) and Ciena (less exposure to DCI and more to Telco / Optical)
Assuming that Oclaro executes on the 2016 plan and the OCLR stock continues to go up, then the current shorts will unravel.
This could happen as soon as next week with a positive earning report on February 2nd.
Shorts will not disappear and will open new short positions as the OCLR stock goes up in price.
Concerning Soros, his investment in OCLR has a hedging strategy. I would expect that he will convert sometime in 2016 although there may be some plan to sell OCLR to a larger company and this conversion could be part of the M&A plan.
So all we're talking about is Soros shorting to lock in gains and more so as price increases, which makes sense. Nothing here indicates any sentiment of risk to PPS due to performance of company. OCLR should have a great earnings report and forecast and price should surge. Soros doesn't care that he could have made more because guys like that have targets and don't look beyond them. Ll I'm saying is that as a long, this is not the type of short interest that would concern me. Am I missing anything?
exactly my take, jeebe. they are happy with their 10 percent gains. and it only makes sense that the short position would increase with an increase in share price.
Its been years and they are due... Big percentage owners in the game and are committed.
So he's hedging his bets on some of his holdings by locking in. I can see that being the case.
A lot of the big boys and funds go short and long an equal amount of shares. I do the same thing at times, for it is a win win situation. The stock goes up , and you sell your long shares and if the stock goes down, you cover. your short position.
Try it and you will like it, and you can thank me later.
hey Sean, remember that Soros basically is sittin on 35 million shares @ $1.95 and his only way to currently lock in profits is to sell shares short, knowing he can always cover @ $1.95. 9million shares is only a quarter of his position. Plus he's getting a million$/ qtr in interest.
yeah Jeebe, I saw that also. But that # is 18 trading days old. The volumes over the last 18 days have been such that 19 million shorts could have easily covered. Average daily volumes, pre summer doldrums, were runnin at about 1 million/day. Over 40million have traded in the last 18, with no real share price movement. I don't know what that means but it is curious. Also noticed that the standard August and November automatic insider sales did not take place, even after nice post earnings bounces. I'm calling that bullish, especially after the May insider purchases. Any thoughts?