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Re: donkschmonk post# 38323

Wednesday, 02/17/2016 9:38:17 AM

Wednesday, February 17, 2016 9:38:17 AM

Post# of 48153
LOL... it doesn't take an expert to answer that question, which is fortunate since I ain't no expert... smile

Ihub is showing S3D w/ a 52-week low of 1.02 and a 52-week high of 7.49... @ 1.41 close yesterday it doesn't require an expert to see the stock is trading much, much closer to its low than its high... in general from a risk/reward point of view with all other things being neutral you want to acquire stock when its near its low and lighten your investment when its near its high...

Right now based solely on this one dynamic the risk/reward favors longs over shorts...

Now let's consider the risk for both... the max remaining risk to a long is currently precisely 1.41 a share... since the stock cannot go lower than zero... the max risk for shorts is undefined since there is no ceiling on how high the stock might go... the max reward is the reverse... shorts can make no more than 1.41 on their current position and longs have an undefined reward ceiling... seems pretty clear to me that the profile favors the long position which is consistent with the reality that for six consecutive weeks the short position has been declining until last week...

Last week shorts accounted for about 800K shares of total volume... why?... either because they believe this is going to head toward zero or because they needed to convince the market that last week's two big events where non events... my money is on the latter... jmo...

Finally, what happened last week?... first an msft rep who makes a living by marketing solutions to customers was very affirming of glassware while seeing a demo with PB and JM... he even began thinking out loud about customers who might be interested in this solution... then VMware featured S3D in its announcement of its lead new product... it should be understood that this is NOT just any product for VMware... this is THE product... the one that is going to help them compete in the new cloud based tech world... they chose the partners they highlighted with great care... last week was profoundly significant imo..

So the final step in deciding whether to be long or short in this environment is to decide what last week meant... and where one believes the company is headed... in my antithesis of an experts opinion I like the long position much more than the short position, but then again that's just me... jmo... glta..
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