RE: Shorty had gutsTrue shorters are typically extremely smart and very knowledgeable on technical analysis. Nortel screamed short 2 months ago even before their latest debacle. Consider that a real shorther would rarely pick a stock with such low volume as EFL to short. A real shorter would have easily read the signs and shorted it at $2.50. Between April 1 and 15 nothing I saw indicated a breach in the uptrend or break in support. The stock was nearing its 50 day ema and a shorter would not typically take the chance at that point. Also with a small co. like EFL one good NR could blow the lid off. Shorters aren't typically stupid enough to short when the risk/reward is so much against them. So why the short and the accompanying idiodic posts now?
In my opinion, shorting to make money at that point could not be the objective. The shorter must have known that no NR was coming, which implies inside knowledge. The objective could be to keep the price down prior to Q2 release and get rid of the weak hands and fend off the 'flippers' who would buy to flip right after Q2. I can't see a large shareholder caring enough. Perhaps the company is ticked at all these short-termers who keep calling IR for information and wants them gone. Strong hands are key to longer term share price increase. The whole thing strikes me more as a move driven by principle rather than financial gain. EFL management wanting to rid the stock of the short-term players. Anyone have any other thoughts on this?