taken off vahoo board , great read
The 3 million share short position dates back to Watt's prior financing @ $7. Watt was trading @ $10/share & watt initiated conversations regarding a $20-$30m secondary. Literally, to the minute...the stock collapsed to $7(see chart $7 to $10 to $7 on approx 6 million shares). Upset by the collapse, Watt delayed doing the financing for approx. 4 months. Over that period, the finance related shorts continued to short shares in an attempt to "contain" the share price of watt until financing shares became available. The recent increase in short reporting from 1.2 to 1.5 to 1.8 to 3.1M shares has resulted from clearing firms requiring the Shorts converting from Naked to legitimately short with an identified "borrow". This is evidenced by the 80+% cost to carry a short position & is also evidenced by the scrambling by every major firm on the street calling watt shareholders, "asking to lend out shares for a significant interest rate'. the recent $20m financing placed with a single long term buyer & now 10%+ holder is the literal final nail in the finance related short position. The smaller shorts represented by Seeking Alpha/Street Sweeper are nothing more than a side show in comparison to the real short holders(Finance arbitrage related".) THERE IS NO LONGER A CATALYST(DILUTIVE FINANCING AT A SIGNIFICANT DISCOUNT) REMAINING! The next words out of Watt's mouth will be commercial shipment of product! In the stock market, Watt delivers any product & speculators extrapolate out future potential. The future potential of a "fabless semi -conducter co. with 70%+ margins" is in the $$$$Billions. Zero ft wireless charging alone will be a differentiating factor wanted by many in the wearable's and IOT's. Speculation of the near term 3-5Ft recharging capability .....From a "mkt potential perspective" is mind blowing($billions of potential revenue with 70% margins). Imagine a transmitter on each desk.....Recharging your phone, mouse, headset, remote, wearable's, gaming controllers etc. Lets not forget about the transmitter automobile segment. The potential is endless! Did I mention 15-20ft capability? No need. 18M shares fully diluted, zero debt, $34m cash with multi-billion sales potential. $100M sales alone, @ 70% margins would generate $4/share EPS. The simple math is $100M sales with 70% margins= $70m profit less SG&A of approx $5M equates to $4/share eps($70M -$5m= $65m divided by 18M shares = approx $4/share eps)........See WTW as an exact replication of the "failed financing hedge" & ensuing MELT UP/SQUEEZE due to the market mechanis of a major short squeeze. WTW had a $130M note due within 90 days(disclosed thru filings....Finance related shorts aggressively sold shares to decade lows sub $5/share. Instead of isuuing a $130m equity offering, wtw raised $40M thru Oprah Winfrey & signed her on as "the face of WTW". This news broke the stock beyond the price collar created thru short selling ahead of the capital raise. The failed trade set off an unwinding of the short position. WTW traded from 4.50 to 16$ in a week & $27 within 30 days. Uninformed investors believe "oprah" had the power to add 7X total mkt value to an old line growth co. WTW had 60M shares outstanding. Should WTW's corp. value rise from $300m to near $3B on the "oprah affect"? ABSOLUTELY RIDICULOUS. The real culprit was the BUSTED financing short in place ahead of the expected dilutive financing. Watt has the exact technical set up! short sellers have been positioned for "another highly dilutive raise @ a significant discount to the current mkt" Watt's prior 2 financings were done @ significant discounts Ex watt trading at 10...collapses to 8 and 20m$ priced @ 6.95. the prior financing Watt trading @ $11 stock collapses to $8 and is priced at $7). The recently announced financing was placed with a single long term shareholder(10%+ holder) priced "at mkt @ $12.38?share with 100% warrant coverage at $25/share. Both "mkt pricing" & extraordinary premium of warrant pricing $25/share were a complete shock to financing hedged short sellers! This is the next WTW but much less liquid relative to 3 million shares short on watt. Both Seeking Alpha & Street sweeper immediately published hit pieces o on watt 1 & 2 days after the announced earnings/financing. Those behind the "negative articles" surely aggressively sold WATT shares in an attempt to break momentum. The result is an additional 500-700k shares short (@ prices between 12.18 -$12.85) $WATT deployed to manipulate the perceived mkt reaction to the news. Those shares will be the 1st to immediately cover.... given the immediate reversal and 1 yr closing high of $13.60.
AI
