Folks, SNTA has 76m shares. Yet the FLOAT is VERY small at only 19M. The reason is that the lion share is being held by INSIDERS and INSTITUTIONS. Shorts can NOT MANIPULATE these shares. Short can only try and manipulate the small float.
Like flies to stench, shorts flock to where they can sense that they can create FEAR and MANIPULATE the price lower.
What can YOU do ? I know you have seen this before, but just in case you have not done so yet. If you hold your shares in a margin account, place a 'GTC' 'LIMIT' 'SELL' order. Just make sure your limit is HIGH enough so it will not get triggered.
Once you do that, shorts will be forced to return shares they borrow from your brokerage.
Remember, the small float can result big moves once we get news.
So don't get fooled by shorts ! REMEMBER, insiders here, Incl the Ex CEO own a HUGE number of shares and they have NOT sold even ONE share yet !
I seriously doubt shorty have more clue than insiders and institutional holders.
I agree with the bulk of your post, but what does it say about the current shares short. Insiders must be shorting their own holdings correct? If only 19M are in the float, yet 18M are short, how can it be any other way. My guess is several insiders are savvy enough to see the channel the stock has been riding in, and if you look at Mr Kovner and Gollust you will see that they have an extensive trading background. By shorting a portion of their holding they are able to profit on the downside...hold their core...and add to it using profits made on the short position. If they had doubts about the future of the drug, they would have simply sold out at higher levels, not, shorted. This, too me, is bullish for the future likely-hood of success. Maybe I am reaching a little, but how else can you explain the float to short ratio? Also. I doubt that the CEO change was spur-of-the-moment. Many CEO's, knowing they will be leaving, will begin pulling profits on the equities the receive. He has not. Lastly, many of the insider purchases, including some large blocks, have been at prices above current trading levels. That means, at these levels, entry is prime. For these "big" players to realize decent profit, the price will NEED to get back to $10 to $12 per/share, as you can't simply dump millions into the market without tanking the share price. They know this, and they would not have bought millions more shares recently if they did not strongly feel this was going to be a home-run success. GLTA