There are 2 good things about short sellers that people often overlook (and I have never shorted a stock in my life):
1) It is affirmation that your stock is going to go north. They don't drive the price down to sell it at an even lower price for a loss. They drive the price down to establish their positions, then let the stock price ride north where they sell and make their money. Taken in its context, this is an affirmation that you are in the right stock. If you were in a dog, no one would short it as it would be a one-way ticket down to a loss.
2) It creates buying opportunities for longs. If you are comfortable with a stock at $4.50/share, you'll love it at $4.00/share.
Don't get me wrong - wish they'd go away and leave NVIV alone, but hey - the above 2 are very real positives to be taken from their action for those who are long. One is an affirmation, the other is further profit opportunity for us.
Hi vo2macs and amesknows - I know what you both are saying. I could have worded it better. Obviously a short is selling at a price and then buying back at a lower price - hence their profit.
But the short then owns the stock at the lower price, and likes to ride it back UP, whereby they can then repeat the same thing over and over. They don't choose stocks that are going to -0-, they choose stocks they can drive down to the lowest possible price, profit from the sell-buy, then ride it back up and profit from the buy-sell.
Repeat cycle and make money on both ends of the stick. Apologies for my poor wording, but my intent is the same - they create opportunities for longs when the price is dropping and they are, by the very nature of being interested in this stock, affirming it has good upside over the longer haul.