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Re: None

Tuesday, 08/05/2014 1:09:34 PM

Tuesday, August 05, 2014 1:09:34 PM

Post# of 73703
how's the squeeze working for all you shorts?

good luck with all that! BYSD

"Contrarian investors look for stocks with heavy short interest specifically because of a short-squeeze risk. These investors may accumulate long positions in a heavily shorted stock if they believe its chances of success are significantly higher than believed by those who are bearish on it. The risk-reward payoff for a heavily shorted stock trading in the low single digits is quite favorable for contrarian investors with long positions. Their risk is limited to the price paid for it, while the profit potential is unlimited. This is diametrically opposite to the risk-reward profile of the short seller, who bears the risk of theoretically unlimited losses if the stock spikes higher on a short squeeze."