I have stated many times early in the year that at some point borrowing shares could be a problem for the shorts. I'm guessing that in the current quarter that they will have borrowed several million shares that they have used to pound this down with and what it means is that the supply to keep pounding it are going to run out sooner or later.
Imo, part of our rise in the spring was as a result of shorts being forced to cover because the lent shares were pulled. What do you want to bet that this might happen again.
The other part that stands out here is who were the 10 million shares shorts that never covered as the stock was running to the $70's?
If it turns out to be Citron you have to ask yourself if their efforts here are to cause enough disruption in price to get covered at current prices as the earnings are good enough that covering going forward has the risk of doing it with a triple digit number.
So much of this story might get told when the next short interest report comes out, imo.
There were 6-8M Shares Short by Short Funds & ETFs back in 2011, so I suspect that is the "base" minimum. That will probably never decrease. The base increases as QCOR gets onto more indices and more of these Funds/ETFs come into being.
You must be talking about the shares that Mr. Scrooge McDuck swims with in his vault. What dust? And if and when the 'dust' settles, QCOR will still be printing money. So unless someone drops a hydrogen bomb on California and Maryland I doubt they will ever be $0.00. (Which I think is your goal here? Unless $30 is the magic number that someone is trapped.)
While I would love this to be true, the lending rate is still very insignificant at 0.39%. I have not updated the lending rate for QCOR for a long time as it has essentially been zero and nowhere close to the 20-30% that was seen earlier.
For anyone interested, I have also moved from selling puts continuously to a 50/50 strategy of selling puts and owning shares. Unsurprisingly, this change came close to the peak price causing me the most pain :p . Selling puts has been a great strategy on QCOR due to the high IV and rarely leads to a loss until expiry. So far, since the beginning of the year, I have only lost on my 60 Jan puts sold at between 6 and 7 dollars near the peak but I think that even these have a better than even chance of ending up being profitable. I have been recently selling Jan 50 puts at about 5 dollars. I think 10% in 1.5 months is pretty darn good as is owning QCOR at 45. In fact, I think that the risk/reward scenario here is so absurdly good if you can tolerate short term volatility (and, this, I must admit, is always more difficult than one anticipates) that I have put about 30% of my portfolio into it. There is the minimal chance, of course, that everything goes to hell but then I could also wake up to WW3 anytime.
To take this thinking one step further since the short position was rising here of late I suppose its possible that Citron is the party that has shorted the majority of all new shares shorted. That there is nearly nobody else here involved.
Lets face it if you followed Citron and shorted based on the prices that it happened and finally started covering in May and June you got your head handed to you on a platter.
So why would you follow their lead again?
I suspect Citron thought they had QCOR pinned to the mat twice: first, with the Aetna hysteria of fall 2012 and then with the attempted purchase of Synacthen by Retrophin and the planned attending publicity of a cheap synthetic alternative to Acthar (which probably would have never been marketed and made absolutely no financial sense at $300 or $400 or $500 per vial LOL).
Guessing now they are throwing everything including the kitchen sink to depress the share price for as long as possible. The latest saber rattling about Medicare fraud goes nowhere in my opinion except increases the noise level.
Bailey showed us the potential for QCOR in the addressable patient population slides. Just gotta be patient, let them do their work.
Sentiment: Strong Buy