Shorts do not control this stock, for there is only 1600000 shares short and instutions have 70% of the float. 3 days is of short intrest is nothing. Instutions control it. On friday some of the instutions ran out and the small invester followed. But i think the stock will digest this fall now but if any bad news comes out later it can fall again. The stock can now work its way up but it will take time to get through the old high.
>Shorts do not control this stock, for there >is only 1600000 shares short and instutions >have 70% of the float. 3 days is of short >intrest is nothing.
That short figure was for the previous month, and even when one for this month appears, it still will not reflect the short action on last Friday (volume of 5,000,000) because the 15th is the last day that will be included.
Long Term Sentiment Disclosures stating "Sell" or "Strong Sell" were infrequent when the stock was at 50-plus. Now that it has dropped around 20%, they come out of the woodwork. Methinks they are all shorts hoping to convince others to sell their shares, creating a further drop in price. Self-fulfilling prophesy sort of stuff.
It is interesting to see these message-board "downgrades" showing up after the drop, much like analyst downgraddes after a stock drops. Often, an analyst downgrade happens in the same way, when the stock becomes a relative bargain. The timing of the "downgrades," both types, reveals the truth and reasoning behind their actions, and seriously devalues their words.
Certain facts remain here: The company is growing, and revenues from comsumables are growing. Net profits YOY are growing very well. Quarterly performance should be compared not so much with the previous quarter, but more importantly to an annualizing trend, the same quarter a year ago. This is largely due to certain purchasing trends that take place in annual cycles based on the budgeting allocations of the purchasers. They are in a niche with no competition. They have patents on their systems. They are state-of-the-art in their technology. They save hospitals money and reduce patient trauma and recovery time. There are many more positives for this company that when compiled into a list, should easily be able to justify a significantly high P/E ratio.
Tax events may cut into their net in the near future, but they appear to still be on a long sales and net income growth track, and it appears that it can contunie for several years.
Time will tell if this opinion is right or wrong. The road may have other bumps along the way, too. But the trend should be your - and my - friend...
PS: Institutions control MOST stocks, mel098b. This includes the hedge funds...