RE:RE:RE:RE:Barron's confirms 5.68 million shares short!!!
insiderfinder wrote: Shorting is very, very odd.
Try explaining it to a small child with trading marbles and they will never, ever understand.
Shorting was invented by the traders to make money. We gave the keys of the farm to the wolves. The general investing public wonders why the sheeps are getting slaughtered.
Shorting is the investment cancer on our markets. Will cancer kill the markets? If left unchecked? Probably.
Near term, for NHC, it means that a substantial number of sellers have already sold the stock by borrowing it from unsuspecting investors. In our regular life, "borrowing without consent" is called stealing. In the markets, it's called "short selling", or worst "naked short selling" where the shares aren't even borrowed yet!
There is a promise to pay at whatever price the short sellers decide to drive the stock price to. Usually a negative.
So, say they short sold it at $4, they play to buy it lower at say $2. Now, the short selling ratios on NHC HLTH are huge. The stock was selling for about $4 at the end of October. But that's before the sector wide shorting was understood.
If the stock say jumps to 8$ because they get a buyout offer or sizable insider buying happens, the shorts lose big (twice what they put in). They race to cover before the momentum traders drive the price back up. Credible third parties have this as a $10 stock so a quick reversal could be possible (but they aren't common).
Nobilis has addressed the short seller argument in a professional and very complete way. Investors are a greedy bunch, we'll pick the stock with the highest returns. Especially if the short seller generated fear is dealt with.
I am very attracted to Nobilis. Unless this company is a complete disaster, the short sellers might have chased this stock price into their own trap. It's now too cheap.
Certainly one to watch before jumping in. Is there a way to get daily short seller reports to get a better idea of the immediate direction of these "packs".
TechShortTardAttackInsightTarget - the jig is up, I have your aliases surrounded