Why is the prospect of a short attack so annoying?The mods at agoracom won't even allow this to be discussed...short sellers, who've gone from being over 1 million shares short up to April 15th, and more recently over 1.6 million short up to April 30th.
The idea that short sellers could double down on their positions, and tank the PPS again...for some reason this topic is verboten in that forum. Those behind the significant short position though probably appreciate it a great deal.
When shorts attack a stock, trying to foment the impression of a broad based sell off....they don't want the retail herd to know that they (the short sellers) have exposed themselves to signficant risk. They want shareholders to think that the world is ending....that the PPS is tanking because people with foreknowledge of impending doom are jumping ship.
It works a lot of the time...in fact I would say it works most of the time. But if that's been the game here recently its not working out well at all for those who've been borrowing shares and dumping them back unless they've already covered off. We'll have a new update next week which will give us the updated number through to May 15th.
Between now and that update I am operating under the assumption that the number is still at least in and around that 1.6 million figure. Short interest at that level would have a margin requirement of somewhere around $7 million in total by my calculations.
I figured Monday would have been a good day for shorts to attack after Friday's positive after the bell news. If you want to demoralize people there's nothing better than setting the expectations high and then crushing them.....its manipulation at its finest.
But it didn't happen, at least not on Monday....but I still see it as very possible, especially before we're updated on the degree to which shorts are exposed on RVX.
I'm not sharing these thoughts to spread doom and gloom.....but rather to suggest that if this does come to pass, that imo it would not be a doom and gloom situation....but rather a reason to be bullish.
Hopefully I'm wrong and the stock keeps climbing higher and higher though....