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  • beavertailcanada beavertailcanada Jul 26, 2012 12:25 PM Flag

    rim valuation

    Christian,

    Here is another way to look at it. It is my old post.

    Interesting when I look at the trend - number of short shares correlates to the share price drop.

    The general trend is share price drops along with increasing number of shares shorted.

    So if we look at the last three short interest reportings and the closing share price on the reporting day. Interesting number comes out when you calculate (the number of short shares/price drop).

    Between June 15 to June 29, the ratio is 3,427,506 shares/$.

    Between June 29 to Jul 13, the ratio is 48,051,100 shares/$.

    Date----------shorts--------price----(short share/$drop)
    7/13/2012--92,143,011--7.25---48,051,100
    6/29/2012--85,415,857--7.39---3,427,506
    6/15/2012--73,419,586--10.89

    Let's assume the share price drop is a function of short shares. It means for the second half of June, it takes 3.4M short shares to drive down one dollar. In the first half of July, it takes 48M short shares to drive down one dollar.

    In other word, it is taking increasingly more short shares to drive down the share price.

    Using this assumption, it means to drive the share price down to $6.25, shorts would need to borrow another 48M shares. We are getting to the point of diminishing return.

    This is just a way to look at things, to give some perspective. Of course, it is not exactly how things work.

    Shorts has the media and message board to loudly broadcast their propaganda. Us longs needs to filter out all the garbage.

    Ayuh to shorts.

 
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