Many short sellers pyramid on the way down. This
can dramatically increase their equity but at a price
of tremendous exposure to a rally. Example1: If a
stock drops to 2/3 initial value and the short seller
shorts continously on the way down , he can DOUBLE his
equity. Borrowed Money is the key! Plus he compounds on
the way down! Example2: as before but price drops to
1/10 initial value ( real world :IRIDIUM) . Resulting
equity is 100 times initial equity. You can read all
about this in the well known book by Thorp and Kassouf.
They give the math in an Appendix. George Soros
mentions his very successful use of this in 'Alchemy of
Finance'. Marty Zweig (?) discusses it in his book .
would be glorious to know just how leveraged the shorts
are and their individual holdings.When they cover,
they have to bid just like the rest of us.
Furthermore, if they are fully margined , a rally will force
them to post additional margin or their broker will
liquidate ( i.e. BUY STOCK ) . My guess is that at least
SOME shorts are exposed in the above manner , just on
the drop from 22 to 17.
So far today we've traded over 100,000 shares.
This has been accomplished in the first hour. There
has been no word from the company that I've seen.
Action looks like short covering to me. Cover some stock
and then let it drift, make sure you always have an
offering out there on Instinet to discourage real buyers,
and pray that the company stays mute. Some game.
Can someone point out the insider trades. where,
When. All I have found are some insignificant sales
from last over three months ago. I know insiders of
other companies who routinely sell some of their stock
at one of its highs so they can invest in other
companies. They too don't want all of their eggs in one
basket. Shorts are being negative. There is no inside
selling in recent weeks. Thats old news morons.
they certainly are not buying. One of them didn't
do their homework. Took the me to approach. I am
buying. Probably the one with worst record is selling.
Thats my next analysis. I will come back with that
These models are all fine. I wonder however, what
happens to the "11% growth into perpetuity" if ANLT
misses earning projections by a penny next
Like the rest of you, I keep waiting for the support
level. We're near a historically low P/E ratio--was that
9 or 10x earnings? If I had a large short position,
I think I would be looking to cash in some of my
chips starting now. Are you listening to me, you
shorts!? Time to cover!
That appears to be the catalyst for this new
round of price erosion. Will the company make their Q4
earnings target? Yes. Will they start telling analysts
that backlog is not building for reasons of utility
mergers and unavailability of software? They already
have. Are the company's margins slipping? No, they are
not. Is the market for small cap stocks shitty? Yes it
is. Will this stock ever have an up day again? Yes it
will. Do we as shareholders have anything to fear
beside fear itself? IMHO, No.