There are 65M short shares. That means for every penny moving up, shorts lose = $0.01 x 65M = $650K !! However they have fallen into their own trap because they need to keep shorting to keep the lid on, have to pay large interest on the borrowed shares to the MMs (brokers), and not to mention the margin costs on the funds they must tap into. So it is very costly for them. Ever wonder why they keep wring BS blogs, and keep bashing on MBs? Well every penny counts and its $650,000 every penny..that's why!!
Any good catalyst or a convinced institutional buyer will ignite the fire.....it will happen, the short thesis is just not tenable.
that logic only works if one institution is responsible for all 65m shorted shares. All money on public education has been wasted money. There is no way this logic helps you feel better. Just be patient and stop trying to comfort yourselves every five seconds.
if you understood options and how they work from 13 to 7...you'd realize that shorts can pocket and premium right away...hedge funds play both sides...you only understand one....you need to go to the orex message board and read what they say about you arna longs
The stock has moved down from $13/share to $7/share in the past year. That makes it difficult to argue that the shorts are losing. Consistant sales growth over the next few months is what will drive them away.
The corollary to this brilliant insight, of course, is that there are more than twice as many shares long. So, for every penny the stock goes down (and it's gone down about 190 pennies so far this year), more than $1.3 million is lost. The MM's themselves, by the way, are the principle shortsellers.
You are sooo wrong. Perhaps some individual longs are trapped, that is certainly true, but the overwhelming short positions are hedged to protect the profit accumulated in the short position at its apex. Shorts don't care which way ARNA goes in the end. Carrying the insurance for the upside is an expense which continues until equilibrium ensue.