Bioelectronics Corp (BIEL)

[misanthrope]

Are you referring to those nearly meaningless daily shorting reports? Those are basically instantaneous readings of uncompleted orders that close within milliseconds or within 72 hours.

The only short interest data that matters is the bi-monthly official short interest numbers, and the most recent covering June 30, 2016 indicates that less than 12,500 shares were actual short positions:

Spot on - nearly every penny stock board is filled with posters who have zero understanding of how short interest really works, or which reports are relevant in determining how much actual short interest there is in a particular stock. As soon as the PPS drops on 'good news' it's blamed on 'shorts covering'. It is nearly impossible to effectively short sub-penny stocks, and takes significant amount of covering funds which ups the risk factor.

What a stock like BIEL does have is flippers - high volume and deleterious share structure make that very profitable for some. Despite the indication that sellers are 'morons', the reality is that there is more than one way to make money on a stock like BIEL - take the risk and go long hoping for the big break, or flip it repeatedly and pocket the gains. Neither is inherently 'smart' or 'stupid'. If the big break comes, however, getting the PPS up significantly and setting a higher baseline will be impeded by the flippers cashing out - and also deliver some of the negative effects of previous dilution.

Today's update is positive, but not yet the big break; so back to a holding pattern for the time being. I'm more interested in the financials for the recently closed quarter - will tell a lot about the financial health of BIEL, which is critically important. Let's see what sales and profit margins reveal.