RE:RE:RE:RE:RE:RE:RE:RE:RE:Short interest down to 6,303,868That is ridiculous logic. I bet you would never make an analgous argument for a stock at an all time high after it has had a fantastic run such as CXR had a couple of years ago. The point is the doomsday scenario is far from being confirmed and that is what has to happen for shorts to make the returns you are alluding to. the stock is already trading at option value. It certainly can go lower, but 50 cents would mean the company is weeks or a couple of months from having to file, unless a white knight appears out of no where. We are not even close to being in that scenario.
Shortingtozero2 wrote: Lumberfeverlong, shorting a company that is already down from its top is actually more successful than trying to time the top. Often, if a stock has dropped because of a fundamental factor, such as in the case of Concordia, things tend to get worse and worse, and when the debt exceeds the assets, usually terminal.
Shorting a stock from $5 to 50 cents is still a 90% drop any way you look at it.
Shorting a stock from $5 to $2 is only a 60% drop in comparison.
Just because the stock is "only $2" it doesn't mean that it still can't go down 100%
I would say that the only investors getting slaughtered on Concordia are the longs.
Lumberfeverlong wrote: And there are much better shorting opportunities than CXR at these levels. No one has visibility on earnings going forward. Any momentum on that front will have to wait until Q4 ER or later. Any positive developments on that front will make this stock a very good risk/reward story for longs from these levels and a horrible risk/reward opportunity for shorts from here. Again, company has sufficient cash to operate for many months without having liquidity issues no matter what Chicken Farmer tweets!
All pigs get slaughtered eventually!
Craigbad wrote: Yes I believe Lumber was saying smart shorts are covering since the stock was $30 or $40 bucks. He's a true expert on the matter! Lol
Technicals are horrible, there is no earnings momentum, debt worth more than the assets and I expect further writedowns/ heavily reduced cashflow. Not many funds look at putting client money into a company on the basis that it might not go bankrupt this year, shockingly there are much better risk reward opportunities out there.
DeathPool wrote: Now lumberfeverlong is giving lessons to the bullboard on short covering. LMFA!!!!
I thought I had heard it all by the Big Bagholder.. but he never ceases to amaze me