If short interest report tonight shows drop of one million shares (to 3.3 million) will price drop tomorrow? or does it show shorts want to get out at this price and should go higher? back close to breaking even. wonder if i should get out of this stock?
I think that short interest makes no difference to the stock until we get a catalyst. The chart for the last two months shows a definite wait-n-see pattern with mostly robots and day traders making a few small trades to skim a few dollars both short and long. The chart could turn around with a little help from our friends but I suspect it will continue to sit in the current state of limbo until we get some real news. Unfortunately the next announcement will probably just notify investors that earnings are coming during the second or third week of March. I really don’t expect to hear much from Eno until the earnings conference call (following right after earnings). He’ll probably tell us that the integration is going well, samples are being made and sent out, hundreds of potential customers have been identified, some companies have approached him about teaming for development of bio based chemicals, the results of the various engineering and environmental tests are going smoothly and everything appears to be on schedule to begin production later this year… Same sort of nothing ambiguous press we've been getting for years.
This company has enough cash and time to execute a brilliant turnaround in 2013, but it is going to have to start by forming an actual agreement with Antibioticos, pinning down a few customers, taking a few orders and setting a few firm dates. The date information can get a company into a bit of trouble if execution errors get in the way so it is better to be conservative rather than let the market force their hand. Regardless we need to see progress sooner rather than later because a company that waits too long risks negotiating from a position of weakness as it runs low on cash.