Hello, as an interested potential short investor in this company I have two questions. 1) What do you think the catalyst for selling in this stock will be. 2) When do you see it happening. 3) Where can I go to find shares to sell short?
Any help would be appreciated, shorts need only apply as I am not interested in trashing this stock or anyone else.
You won't have a definite selling catalyst in the stock until the lockup period nears expiration in five months. However, on occasion investment bankers will allow a shortening of the lockup period, assuming there has been a substantial run up in the price.
Keep in mind that the investment bankers are only beholden to the pre-ipo shareholders. If the IPO was at $21 and the stock doubles (which it has), they might be tempted to allow insiders to cash out early. It is in their interest to make sure that insiders and those who bought pre-IPO come out OK. They would only allow an early expiration of the lockup as long as the stock were safely over $21.
Other than that, if tech stocks got their old luster back, they would be draining money from other sectors, such as KREM. Its no surprise KREM has taken off while tech is down. The reverse will happen once money is flowing back to that sector.
Then again, if you're short you have to love the lead underwriter issuing a "buy" rating with a 12 month target of $45, on the day the stock was trading at $45.
I've been able to short at Ameritrade, although some days they have none available.
In your opinion is this a good price to short or do you think there is still upside left to it? Looking at the chart it seems to have behaved fairly erratically and I'd hate to short at 45 when you can short it at 50. Also, what do you know about brokerage call back's?