exactly right but question is why so many are short? are people betting on a share offering, bankruptcy, fraud? these are not individual shorts but large funds betting against it. i can't figure it out.
Why so many are shorts ? Velt is an easy target. Foreign company, high DSO, mobile advertizing market still uncertain in terms of profitability, bad economic environment, unproven company. All these make it highly probable that Velt will find bumbs on their growth road and shorts can then create a panic mode on the stock whenever a news can be viewed as negative and laugh an their way to the bank.
because short funds and groups take advantage of panic mode, which happened here 2 days now, they will leave with their profits and move on to the next bad news release of another company..they are very very good, and making a ton of money...best thing to get them is for a company to issue news during the day they are shorting, like a buyback, or insider buying, which scares them back out....but in this case, they made a ton of money on a good company with not such bad news that warranted a 30% drop in stock price.