Short interest is actually up, about 200k more than January for a total of 27,230,343! Unf**kingbelievable!
What will it take to break this impasse. I think we'll see more of this range-bound trading for the next few months at least.
They keep doubling down to hold the price down and their unrealized gain where it is without having to reflect any unrealized loss on their books. Their avg selling price have to be in the low to mid $13. For those that got in later, like the April 2012 area, they have to be in the red as the price of the stock was in the 10-12 range. We just need a lot more new buyers, SPPI buyback, and qtrly dividends if no other opportunities arises in the next 4-8 qtrs.
Sentiment: Strong Buy
Do you notice that the institution ownership went down according to the last data on Yahoo Finance? Some posters suspect that the shorts are working with the institution longs by borrowing stocks from them to short. If the suspicion is a valid fact, and suppose the retail investors do not like lending their stocks out to the shorts, it will be more difficult for them to borrow stocks for shorting, even if they want to put more money to double down.
The latest short interest is up a little bit. It is possible that the number will keep going up at the end of February if they continue to short more to keep the PPS down. There may be more institutions to sell at the same time, if this is the case, it is likely that the stocks available to short will be reduced. The natural cap for the short to borrow is the float. There will be a point that the shorts are not able to borrow more. Maybe we do not need to wait for 4-8 quarters to see the PPS going up significantly if the company keeps doing better.
Looking at the intraday chart recently, I seem to have sensed that the shorts are pretty powerful in manipulating PPS. What I do not understand is why these shorts cannot bring the price down to zero for months? If they are unable to do that, it indicates that there is a limit for them. The better the company performs in profitability and diversification, the less room is left for the short to maneuver. It may be true that when the short interest reaches at such an incredible high level, it has become the problem for the longs because the shorts cannot cover easily. For me, this seems to be more of a gambling than an investment – which will we see first at PPS, zero or 20?
With the situation in DC and World Wide these hedgies have the markets by the gonads. They can just wait it out. The end of March will require raising the debt ceiling again. That should add to the excitement! It's my opinion that a lot of foreign money is betting against US companies and markets.
i believe there are over 10,000 hedge funds worldwide and together as of late 2012 i believe they control approx 2.25 Trillion us dollars . now if we google search " fifty largest hedge funds" we can find a list of 50 or 100 of the largest hedge funds many if not most if not all have multi billion dollars to play with.
now goldsacks files with SEC that it is long positioned in sppi , for example .
but gold does not publicly disclose if and to what extent it is short sppi. ( i believe that goldman does have to report its shortinterest to FINRA- BUT the info stops at finra, i believe) I have not taken time to look at the institutions long sppi and see how much money these institutions control. they probably all control multiples of the total mkt cap of sppi corp.
so i can perceive how a shortie hedge fund can keep a losing bet alive and well for a long long time. sure it might be a losing bet but perhaps they can afford to ride the loss for a long time. perhaps they have offsetting winning /profitable bets in other stocks. perhaps if shortie is losing money on sppi, the shortie has done the math and concluded its best course of action is to maintain sppi pps suppression and hope that someday in future a corporate disaster will occur........??
but as we see we ackman vs icahn in the herbalife saga.........all hedgies are not in alignment. so i ask for the nth time,,,,, why does not some billion dollar institutions(usa based, cayman isl based, ex usa based) simply take very large long positioned stakes in sppi ( and no lending out of long shares). would this 3rd party intervention not put massive squeeze on sppi shortie ? the new long positioners would be asking shortie to reassess how much money is he willing to flush down the drain in order to avert having to cover his bad, money losing short bet. SUCH scenario is so ripe for big profits i cannot fathom why it is not being done. clearly the issue is beyond my pay grade.
i would ask as follows: sppi has mkt cap of 680 million us dollars. in contrast there are scores (hundreds??) of hedge funds worldwide that control billions of dollars. I believe for example golldmenn sakk hedge fund has over 20 billion under its control (AUM). BRIDGEWATER HEDGE FUND has over 60 billion and SAC/STEVEN A COHEN hedge fund,,,,,,etc.......
so the numbers seem to indicate the hedgies can afford to hold any position (long or short) for virtually as long as they so choose......... am i incorrect ?? of course holding a bad bet for a long period of time is a money losing proposition but perhaps the hedgies have offsetting winning/profitable bets allowing them to hide or maintain the losing bet hoping for a "event"/hail mary touchdown pass completion might just occur sometime in future ??
A buyout rumor and/or actual suitor bid, is the only catalyst that i think would realistically create a squeeze. I still believe at the current pps, this is a definate possibility.....not saying that is what I want.
kgrich- if raj simply issued a press release stating offers have been made............\
if raj hired jpmorgan to find interested bigpharma suitors for participation in an auction sale of sppi............
we all know sppi would re test 17/sh in a heartbeat.
sthunder- when you are in as deep as the shorts are now you can't get out !!!!!!! you have to go in deeper and hope for the best. My question is (and I really don't have the answer) - what if all the shorts bought the stock as longs and then shorted them. Everybody says there is not enough float. If they want to cover they can buy their own stock. Maybe somebody can explain the systen to me.
golf- seems obvious to me that the sppi institutional longs are a very significant portion of the sppi institutional shorts. im thinking its one or two hedge funds that comprise the vast majority of the sppi shortinterest. im thinking goldmaaann S. is one of them. they are brutal and make jim cramer at his worst seem like an "angel". they have the money to keep sppi down for long time i am thinking. and even if they are losing money on sppi they are offsetting with profits in other stocks.
today was all institutional trading imo. all manipulation, imo.
im thinking with the high frequency trading, the ten cent moves, the quarter moves, the 75 cent moves..........are possibly making profits for the high frequency traders .........and if so,,,,,, why should sppi not be range bound absent intervention of a 3red party (new institutional longs) or some sppi driven catalyst/event.............like a brand new leucovorin big time shortage due to sagent shutdown . something of that nature. or perhaps an unexpected publication that sppi corp is up for sale......