RE:RE:RE:Ceapro Short Positionoats wrote: keg31,
A short position of 636k shares is no reason to panic.
As stated previously, there is too much in the hopper for anyone to decide to take even a small short position. so I am not really understanding why such a large short position at this time. However, maybe someone knows something that ohers don't. Given the lack of news and obvious delays in plant start up, maybe there is justification but I certainly would not have shorted the stock. My belief has been that this current short position has to do with eihter exercising of wararants but no proof of that yet. A dramatic drop in the short position would lend some credibility to that theory.
From a technical perspecitve, the stock is teetering on the next move lower to solid support at the $1.20 level. There certainly seems to be a lot of support here in the $1.35 level but the selling continues like it has, a capitulation move to the $1.20 level could easily happen soon. Throw in the short position re covering and you would get a nice rebound. Of course, this is all hypothetical and a guess.
What is a certainty however, is the fact that the company has, once again, fallen back to the old days with regards to shareholder communcations.
Also, this rumor BS about the Marijuana side track is disappointing for me. If it is true then I would suggest that the company has taken their eye off the ball on the other initiatives that have been on the table for so long. Therefore, I cannot give any credibility to the rumors and hope that they are not true.
| Short Summary |
| Short Volume | As Of |
| 636,300 | 28/Feb/2017 |
| 554,100 | 15/Feb/2017 |
| 515,000 | 31/Jan/2017 |
Lets see if the short position is still rising when we get another update next week.
We are almost done with Q1 now and we won't even get to find out what the company did in Q4 for another month or so.
If the Q4 and Q1 results are going to be anything like Q3, when they only had 0.9c/sh in earnings, then who knows how much the company might slip. Another 0.9c/sh for Q4 would give them 6.3c/sh for the year. 5.9/diluted share. Maybe the market would accept a 20x P/E multiple and it would hang around in the low 1.20s. Maybe. But if they have 2 quarters in a row with less than 1c in earnings per share, I'm wondering if that 20x multiple might compress a bit for a while. It might stay compressed until a blowout quarter can uncompress it again.
We may be in for a weak 8-10 weeks from the results of the next couple of quarterly reports, but with so many 'things in the hopper' as you said, I don't think there is much doubt about the future growth of the company.
If it does hit 1.20 as your technical perspective suggests, then I'd personally consider that to be a buying opportunity for long term holders.