Of the two possible scenarios concerning the increase in the last reported short interest period, which seems more plausible?
Did the Douglas clan sell shares short as an insurance against their recent purchase of
REFR shares through Craig-Hallum?
Although I suggested this upon seeing the latest short interest figures, I really don't think this was the case. Such investors just don't throw money out the window. They can and do make mistakes in their investment decisions. Nobody is perfect in this arena.
Or was a short strategy already set in place once the stock price closed in on $5.00? The charts and the numbers seem to support this theory as we hit $4.99 on 9/28, the last reporting day of the previous short interest period the short selling begins in earnest as 48% of the shares traded in the most recent period shows an increase of 855,368 short shares with 1,794,755 total shares traded in the last reporting period. Why would someone or something go to such great lengths to short the stock at such a low price when they could easily short at a much higher price and make so much more money according to their thinking? Were they worried about funds coming in once the price did rise above $5.00 thereby eliminating charter rules forbiding managers from purchasing stock under the $5.00 threshold? If you notice four days straight (Oct. 16th-19th) the price did breach the $5.00 mark only to be knocked down on exhausting volume by the 19th. Was the shorting offensive still in place on those days? May never know, if funds did buy in above the $5.00 mark they would have to sell back into the market once it went back below. I really doubt that they pulled the trigger that fast to purchase as who really knows what is going on with this company other than there are a lot of "haters" of this stock/company as witnessed by the short response. Too make a lot of money by shorting? I don't think so. But who can blame them, Joe, Bob and others associated with RFI have left a sour taste in many investors over the years with misleading spd progress and market potential income producing statements.
Many have been depending on one oem to carry this company to profitability. Daimler has two low productions cars in the mix. Apparently the viano experiment has vanished and Daimler is having a very tough time competing with BMW and Audi as they still are third in sales amongst these luxury car makers. Daimler is cutting expenses and one area will be r&d. We have seen Audi's concept with spd and now we have seen BMW's. We have yet to see a production model. Of course Joe is telling the market he knows when the next oem production model will take place but he can't give us a date. Do you really think the market believes him? Why does the price sit where it is at presently? No trust.
If Daimler is to continue with spd the s class would be the next logical model to incorporate the tech. It is Daimler's flagship model and must show a much needed technological intensive character to compete with BMW and Audi. But the stock must get a boost from another oem. Seems many are expecting big things from this quarter's report. Not expecting much, only an improvement from previous quarters with the addition of the SL.
Why labor over an explanation? Once you take off the SPD glasses it is crystal clear.
Joe would not sell several rounds of new stock if he believed the upcoming figures from REFR would support a higher price. He had no reason to be in a hurry if he expect highly positive results.
Next. No one shorts that many shares unless they have utmost confidence they will not have to cover at a higher price. Who could have that confidence? Either someone hedging, or someone with
You take it from there.
Looks like Long Island is in for at least a few days on unplanned time off. I hope all the honest people stay safe.