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Encana Corporation Message Board

  • chistletoe1 chistletoe1 May 10, 2013 10:36 AM Flag

    explanation

    what is going on here is an old-fashioned "short squeeze" .... recently, the short interest in this stock has exceeded 7% of the float ... since the great majority of shares in any company are rarely ever traded, that means that traders have taken huge short positions on this stock ... this is very typical of small time, retail investors like bankruptx and beeniebopper.... they wait until a stock has fallen from 100 down to 18, and THEN they decide that it is going to go down further, while management has already put into place all the steps necessary for survival and recovery .... such investors are always the last to buy into a bull rally and the last to short at the end of a collapse.
    So, the folks on Wall Street, with plenty of cash to play with, just love to stick it to these shorts ... when they see that short interest is so high, they start buying the stock, just to force the shorts to cover at their stop-loss level, or even to get margin calls from their brokerage houses .... if it is done carefully and well, the Wall Street players will be able to unwind their position at the near-term top with a nice profit, while the shorts will be burned badly ....

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