at what point and for what reason do the shorts think this stock is going lower. Almost ever sign points to this going up. Possible buy out, partnering with IBM, in a market that is set to explode marrying tv with social media and access,financials sound,analysis predicting $15-$25 value. If you shorted at 15,10,or even 9, you have got to be nuts not to get out at this point. 7-8
BTW, shorts are indeed covering at these levels. look at the short interest history. it's decreasing for the first time in a year. it's no coincidence with the price levels of the stock either being under $8. they're covering under $8.
the question is when the stock retests $8 again soon, will the shorts pile on or cover more until $9?
review the short interest and compare it to the price chart to gather your conclusion
market doesn't trust tuzman and kitd. they're adamant the company is fraudulent hence sec to delist, and negative surprises to come based on the financials. they don't believe the 10k was the last of it. the logic is if financials are not trustworthy, then how good are future projections? especially if kitd has missed estimates by significant margins in the past, so there's a heavy discount on future estimates
for the long term, kitd just needs more transparency and clean financials consistently. when that happens, the $20+ targets will realize. unless they decide to sell the company earlier at a discount so the buyer can fix them up. hence, i think a takeover of $10-$12 is fair price right now if they so choose.
Im not short, but a short could turn that argument around and ask longs, if it's so obvious that this stock is as undervalued as KT and others are claiming, why aren't there insider buys or large institutional buys at this price? The guy at Roth Capital said he anticipated a buyout over $20 a share. If he really believed what he was saying, why isn't Roth Capital management buying all the shares they can get their hands on? The volume indicates some short covering and small investor buys along with some selling. If the major players were buying, the volume would more than double the average, and that isn't happening. My guess is that this really isn't the no brainer that some of you seem to think. I'm in at over $10, and I am not averaging down here because I'm just not totally convinced that this is the bottom, and I think the big boys are thinking the same thing.