ELTP will start rising!
As with all false short attacks, the share price of ELTP will bounce back. I expect the shorts to continue their rumor mongering so they can continue buying to cover their shorts as the share price rises back up however they are tight schedule now with the FDA potential approval of SequestOx arriving by 14 July 2015 or sooner it will become increasingly more difficult to cover at lower prices. And if a major BIG short decides to cover on their own and leaves their other short buddies to go bankrupt then it will be a winning day for justice. (Hint to shorts - major player covering short position soon, VERY soon! Believe it or not :) , you choose and see who gets left out swinging in the wind.)
There is a lot methods for manipulation by shorts to control a stock over long periods of time - First information is widely distributed to make investors wonder about the company and to put fear into those longs that hold the stock. Next, high volume shorting takes place to drive the company's share price down. As the short attack continues, more people parade out news to continue to put questions in the back of investors' minds. On a daily basis, shorts use computerized trading to control the direction of the share price. At opportune times, the shorts overwhelm the buyers (bid price) of the stock by selling short large number of shares to drive the share price down and to eliminate the buyers for the stock at that given time. Shorts need to control the stock's share price over a long time (often several months to well over a year), and can't afford to just accumulate an unlimited number of short positions in the stock, so they have to be buying shares at the same time they are selling shares too. When the shorts drive the share price down, eliminating buyers as discussed above, some of those investors trying to sell their shares at that same time will follow the share price activity downward lowering their ask price. Now the shorts can buy back some of the shares they have shorted at lower prices including some shares where longs have put stop-loss sale orders to protect against downside losses. The shorts will only buy shares part of the way back up as the share price rises, and then wait to see if new buyers come into the market. If the share price continues to rise up to much again during the day, the shorts will repeat the same selling and buying process to control the share price. As mentioned above, the shorts need to control the share price over an extended period of time. They need to wear down the longs with rumor mongering as well as by creating fear as the longs continue to see the share price go down from the computerized trading. They hope the longs will give up and sell their shares at the lowest possible share price.
NOW :)If one or more of the major short players decided they didn't want to participate further in driving the share price down, and decided to buy to cover, this would create a major problem for those other major short players. The remaining major short players would not only have to drive the price down based on selling shares to new longs but would also have to sell shares to those other major short players buying to cover their shorts. The remaining short players would not be able to manipulate the stock share price as easy as they did working together. As this cycle continues, eventually the shorts would lose control and the stock begin a sustain rise in price per share as the short continue to try manipulate the rise and limit their losses. However, if the company has substantial news or very positive business results and SEC filings then the shorts could lose control completely as the stock price sky rockets. Then you will see something absurdly entertaining, or woefully tragic, depending on one's perspective, like that one trader, Joe Campbell, that was on the wrong side, the short side of a massive surge. The "dummy" E-trader, Joe Campbell, decided to go $35,000 short KBIO "and now owes $ETFC a wonderful $106K and was begging for help on GoFundMe. I believe he had to borrow against his and his wife 401K to cover his huge short mistake.
JMHO!
