RE: Big Red Diamond NewsPlus a stock that is heavy shorted can be a good think for us longs. A stock with many short positions can actually make a stock go higher by causing a short squeeze.
Definiton found at www.investopedia.com:
A short squeeze is a situation in which a lack of supply and an excess demand for a traded stock forces the price upward.
Short squeezes occur more often in smaller cap stocks with small floats.
If a stock starts to rise rapidly, the trend may continue to escalate because the short sellers will likely want out. For example, say a stock rises 15% in one day, those with short positions may be forced to liquidate and cover their position by purchasing the stock. If enough short sellers buy back the stock, the price is pushed even higher.
So bring on the shorts, because after the dust settles these stocks are going nowhere but up! Good Luck to ALL!