Another drop in short interest. Down to 7.5 million as of 8/14. Another 1.1 covered in two weeks. I can see why we are getting a decent bounce from the lows. I think the shorts are trying to cover before the sale of Fastmatch comes out, which will be much higher then expected and in the final stages. Could be in the $340 million range, of which $115 million is ours. That combined with the regulation approval of their Hong Kong unit and they will be returning $160 Million to LUK in one shot.
Latest short interest is from July 31st and its down to 8.6 million. That's more then a 40% drop from June 30th, which was 13.6 million. This management is giving the shorts an easy out by scaring all the retail into selling. Makes me think that the management and the shorts are working together.
The earnings are actually good if you dig into the files. The big lose is just a non cash accounting write off. In reality, they made $6 million in profit a month during they Q, but the semi annual interest payment on their LUK loan was over $20 million and ate all of their profits. If they pay off the loan, they will be making close to $20 million a Q in profit and that's just from their core assets. What is a company worth that makes $80 Million in profit a year and growing? I'm not sure but the current Market cap doesn't reflect the reality of the worth of the company, even with the LUK agreement in place. Also on the CC, the CEO said that the company will be debt free by next year. Considering they will have a lot of $$ left from their asset sales, I wouldn't be surprised if they pay off the convertible loan, which is $155M right now.
I'm just stating a fact that the short interest dropped from 13.6M to 10M in a span of 2 weeks and this was before the reverse split announcement. I'm sure the shorts took the opportunity of the panic selling to cover another significant amount. I'm not sure if stating facts makes me clueless.
They booked a nice profit from selling their Japanese unit during the Q and their base business is booming year over year. I will be very surprised if they post profits less then .20. Their Hong Kong Unit should close before the earnings call, with another $40M repayment on the loan.
Dropped 3.5M shares in 2 weeks from 6/30 to 7/15. Lowest level since 1/30. I think the shorts don't see anymore downside and are covering pronto. It's a shame the company is helping them out by scaring the retail into selling right into their hands. I think they cover another 3-4M shares by earnings.
Look at the INSM chart, which had a 1 for 10 reverse stock split.
Institutional investors rarely lend their shares to shorts, its mostly the brokers that handle retail investors. Shorts will have a very hard time covering with the float reduced to 5 million shares. If blue berry is short, it is best advised for him to cover by the sept meeting.
They are trying to bring the institutions back in and squeeze the shorts out. If they did this move a month ago, we wouldn't get kicked out of the small cap index. The shorts will have a hard time finding shares to cover after the split. It's all about the market cap, which is substantially low right now. I just went through a 10 for 1 reverse split with INSM. It was trading in the $.70-.80 range before split. Fell to $5 right after and soared to $25 within a year. Retail investors were replaced with institutional investors. So it soared from .70 to $2.50 pre-split price.
They are reducing the float to 5 million shares, which will take all the liquidity out of trading this stock. But the mutual funds and index funds will have to buy in again. They can't hold stocks under $5. So this move will bring in more institutional ownership. I think all they had to do is get some insiders to buy some shares on the open market and we would be trading in the $3 range without a problem. This management is iffy at best. Cant wait for the earnings and CC, which should be on Aug 8th.
After Hours Time (ET)
After Hours Price
After Hours Share Volume
16:26 $ 1.25 High 244,509
16:26 $ 1.25 High 379,457
16:26 $ 1.25 High 999,900
16:24 $ 1.25 128,729
It looks like there was a major exchange in shares yesterday after the market closed and it was pinned to the closing price. 1.7 million shares at $1.25, which makes me believe that someone drove the share price down into the close to pin the price as low as possible. We should see a huge bounce higher into earnings, which are Aug 8th. They booked a bi gain on the sale of their #$%$ unit and made a nice chunk of change from their core business. Consensus is a loss of 13 cents. I am calling a gain of 24 and a spike to $3 range.