Durect (DRRX)

[Santa Barbara Broker]

Word on my grapevine is that one hedge fund is in process of covering almost 50% of the total 2.5% of DRRX shares currently short. As to exactly why...who knows. But smart short hedge fund managers don't cover when they think there's more room in the basement. They cover when they know they're preserving profit and when they don't have to fight irrational buying pressure ahead of good news.

I was interested when I saw the insiders loading up. But that could be for many reasons. When the short hedges start covering in quiet blocks over a couple days, I become REAL interested. Will wait for a little pullback after the short cover ends and probably add some more around $1.40...suggest you longs hold tight here if the money isn't critical to your life style (you're pretty much nuts to put it in DRRX anyway if it is) and you can stay the course till around the end of the third quarter 2016. I sincerely doubt the real payoff in DRRX is going to be made in a couple day trades.

SBB