Clarification requested, please.
I've been watching the trading over the last few days and have been trying to make some sense out it, like most of the rest of us here. Given the recent developments and upcoming catalysts why would anyone in their right mind short this stock now? The only two scenarios that make sense to me are: 1 - Shorts are finding that it's taking a lot longer to cover since the majority are holding onto their shares, hence the low volume we've been seeing over the last couple of weeks. They keep knocking it down when the price starts to gain some momentum, trying to buy some more time to cover. 2 - This is the result of ongoing accumulation by one or more firms. Again, since not many people are selling, the volume is low. The firms want to accumulate a certain number of shares. They buy slowly and methodically, as the price inevitably rises they short a number of shares and dump them at market value. If they are lucky, some panic selling ensues and drives the price down further. They cover and pick up more shares at a lower price. Even if the price doesn't drop further and they have to cover at a loss, they still get to pick up more shares at a discount compares to the price before the dump. For example: current market price is $10.25. They short 5000 shares and dump them. Price drops to $9.98. They cover at that price and then buy with many small block bids so as not to drive up the price too fast, accumulating what they can. When the price gains momentum, they repeat the process. My logic could be way off so I would appreciate feedback from some of the more experienced traders on here like, but not exclusive to, Starsearcher, Yoda, Queen, BrentK, etc.