Shorting has something to do with itI will gladly thank the shorts when they push it up and are covering, but will assign some of the blame for the current drop in price to them as well.
The truth is, the kind on increase in short position we have seen does have an impact on the share price, especially on a relatively lightly traded stock.
Now fdfd is saying is don't blame the shorts by saying they may be onto something.
First of all, one can say that shorting has had an impact on the recent price drop and be correct regardless of the short's motivation.
As to the short's motivation. To suggest that it is because they have inside information or have estimated that quarterly results are going to be a little light is a stretch. If they had a case for the earnings to be lower than expected we should be expecting a hit piece anytime to help them drive it lower, especially after they have increased their position. Typically the hit piece would come out before the larger short position is revealed (yesterday after market close).
Their motivation is obviously that they think the stock price will decrease. But the why behind that could be any number of things. They may be banking on the market going lower, and CXR with a high beta going down more. They may be betting against biotech in general. They may be trying to manipulate the price lower. It may be Clinton shorting it in anticipation of another tweet. They may feel that CXR is a riskier bet (due to debt ratios), and with recent market volatility investors will flee assets they view as too risky. To speculate on the motivation is difficult, especially in the absense of any credible short case.
The one thing I do know, is that the shorts will eventually have to cover, and driving the stock price down should not impede the management of the business. The shorts had to cover in October, they will have to cover again. As long term investor my timeline is probably longer than the shorts by at least year, so I am comfortable waiting them out, and even buying when they present me with an opportunity.
GLTA
Marcel