Where are the shorts going to get enough stock to cover all those shares they shorted?? I'm guessing the short interest may be upwards of 1.5MM shares. The float is diminishing by the day. Your computers are still wrong and your BS authors and posters have all been refuted, and some have even been accused of outright lying, and you can barely get the stock down below $16. Your average cost probably can't be above this price as most of you idiots shorted into our big $5 Monday move with an avg VWAP of $13.50. If you have a profit, take it and congrats on the nice trade. If you're losing money, bury your head in the sand and hope tomorrow is a better day. That's always a great approach to take for traders!! Why don't you come over from the dark side and join all of us that have done the FUNDAMENTAL research on this company and industry. You can use your power to make money when a stock goes up for a change!!! Novel idea, I know, but just a suggestion
Shorts can get it a lot lower if they want to devote the resources to do it, but they are not stupid, and have to be asking themselves whether it is worth it to establish a short position of 1.5 to 2.0 million shares at an average buy in price of $15 or more.
For them to make a profit they are betting:
1. Management will make no announcements to counter their shorting activity. Bad bet, as any price below 16.35 for any length of time will destroy the value of managment's recently granted options, and spur them to action.
2. The unidentified OEM will be a small player when identified. Bad bet, as the "industry chatter" indicates otherwise.
3. No new announcements will come out of CES. Bad bet, as recently established relationships in the space will attract more interest for companies looking for lower cost touch screen solutions.
4. Company cannot deliver on the quality and quantity of its forecasted production. Bad bet, because the unidentified OEM has done its due diligence, and is fronting UNXL $15 million before a single unit is produced.
The only reasonable chance they have for success is to destroy the confidence that investors have in this company through a campaign of misinformation and price manipulation before all the really good news is fully incubated and released. These shorts don't care about the development of a good product. All they care about is perceptions, and how investors trade on their perceptions, and will expend enormous amounts of money to fleece them out of their hard earned profits that they are otherwise entitled to.
Perfectly put. Basically, it is risk management 101. Too many opportunities for new to move the stock vs. risk. Honestly, the company will put out a press release concerning one of the above topics and the stock will move huge on that alone.
Really enjoy your posts marketsite. I kind of think we are playing with the 3rd and 4th string of the hedge fund world. The big boys don't bother with $150MM market cap companies. Destroying the confidence of most here is nearly impossible. I still have bullets to fire so am not as concerned with the decline in price as I just to get to accumulate more stock and options at cheaper prices
true, but given the same return expectation, I'd prefer low volatility to high volatility. Shorting is supposed to decrease volatility by helping to prevent bubbles.... unfortunately, in reality, this is not the case.