Might as well let the shorts drive this thing to $92....
The ESI longs might as well let the shorts have their fun with ESI and drive the stock to the $92-94 range. Anyone who would normally go long a company liek ESI here is just too freaked out be all the protestations from the short sellers. So if the longs are willing to step up to the plate, let the stock fall. We will eventually find a place where the longs won't care about what the shorts say or think and at that price (wherever it is) there will be significant buying and the shorts will scamper to cover. I wish I knew what that price was going to be at.
You're right, Ox....but I sure am glad that sold some shares when it was at 105 (for a big loss). I'm depressed and have no idea why this is stock behaving like this. I will hold tight the remaining shares that I have.
The shorts may have won this round, but they will be in truble when ITT continues to blow out earnings like today!!
Shorts are all ganging up on ESI and APOL here. It is a well orchestrated attack. And it will pass in time.
Reminds me of NFLX a couple years ago, which still has 30% of the float sold short. Can you imagine the size of the losses in that short position as the market has collapsed. Chanos doing real well there.
The education companies right now are on the focus list forthe shorts. I have to say that they have been very very very lucky so far. Chanos said on national TV a month ago that the education companies were going to report terrible numbers. Could the guy be more out to lunch on the numbers on these companies. But his comments have galvanized alot of short sellers into taking positions in these companies (particularly APOL and ESI as they are the largest cap stocks in the group). These short sellers band together and get their paid research shills to put out negative reports, like that bucket shop Citron. Then they call the Wall Street sell side analysts and scream at them about how terrible these stocks are going to be, in an effort to elicit downgrades, like the lame downgrade from CSFB yesterday.
In the short term, the lose hands get shaken out and technical chartists dominate the action.
In the long term, fundamentals and valuation win out.
I take the long term approach. So much better than trying to ride on the coattails of the short seller scum and the chartists that dont know anything about companies.
So we will all look back in a year and chat about this adventure when the shares are at +$160.