What the shorts don't want us long shareholders to give thought to is that in the next few weeks it will save them millions of tax dollars by taking their tens of millions of dollars of capital gains by closing their positions in 2012, rather than in 2013 when the capital gains and treatment of hedge fund gains rules become VERY unfavorable.
They would rather just create bad rumors and scare tactics where they can comfortably buy shares back to close their short positions and count their ( hard earned , cough, cough) money.
Longs, let's face it, we have failed at stopping their manipulative tactics every single step of the way. Let's not let them get their way for the remainer of 2012. Then let's squeeze the heck out of those manipulative bullies when the January rally commences.
Everyone do what you need to do based on your personal situation. As bad as the capital loss pressures are going to be, the shorts capital gains pressures to get out in 2012, given the fiscal cliff, should be known used to the longs advantage.
Thanks to the shorts, we have had an unnatural decrease in price. It's high time we have an unnatural increase in price.
As you may recall I set up a spreadsheet to calculate the average entry price of the shares shorted since the IPO. It simply uses the bi-monthly shares-short data and the closing price on that report date.
As of Oct 31st, the average entry price of shorts is $15.96.
So, at a share price of $8, their average rate of return is 50%.