Everytime the Quipt shorts hit near 1mil - A financing or...An example of short term trading -Just on the short side.....
Reasons in the past two years for high short volume and the s/p price tanking...
1. Financing coming and participants hedge by shorting
2. Warrant overhang and use warrants to cover short
3. Debenture overhang payout and participants hedged profit before exercising by shorting
4. Another financing then short to hedge their participation.
5. TMN scare
6, Now currently appox 800k shares sold short....???
Why?
Each aquisition burns cash as the company does not throw off enough cash to assist in financing them materialy...After the last aquistion they have approx. 9 mil left in cash and doubt they will use 8% debt for a 5% return....
So shorts are high. cash is getting low and debt interest rates are high.....So financing coming? Hmmmmmmm.....If history is any indication...I think so! We shall see...
All those that shorted in the past made money, in most cases guarenteed.....to hedge and lock in profits...
Stock rises before announcing financing, shorts build a few months before financing to hedge...then financing announcement the stock tanks ..rinse and repeat....