I am amazed what I've seen these last few weeks.
A company announces a buyback program to its shareholders stating they feel the stock
is very undervalued at current levels. They make an announcement that they will buy up to 100 million shares at three cents a share. It is my understanding that they bought close to 28 million shares back from shareholders. That is $840,000, that is no small piece of change. I personally sold a million shares at three cents to the company. In the meantime I've taken a much larger position. This company is no joke. I personally feel they are a very bunch of hard-working, smart, honest individuals in management. I have spoken to management on a few occasions and have always been very happy with my conversations with the company. I personally have never seen a stock more heavily shorted then Phoenix Associates. The short position out on this company at this present time must be staggering. When the company first announced their buyback program, I heard talk of 200 million shares already naked shorted. The shorts since then have been ruthless. There is no question, there are a lot of very strong supporters in this company. Just look at the message board activity. No one in their right mind has been selling the stock under three cents. I remember days when 90% of the volume was all buys and the stock still went down. The volume every day is huge. The short position keeps growing every day. I would not be surprised if the short position is 600 million shares. I know the company has to follow certain rules in the way they do their buyback program. I think they have allotted a fixed amount of money a week for this program. I get the impression they are buying back approximately 5 million shares a week. I am not sure but that is my best guess. As the company continues their buyback program, that only increases our ownership in the company
I have never personally seen a real true short squeeze. All I can say is if the shorts ever really have to cover, they will send the stock to the moon. The company does not have to rely on their share price to continue as a going concern. They have money in the bank and are already profitable. They are done doing their acquisitions and just plan on growing these divisions. By the first or second quarter of next year, I figure they will have their audited financials out. It makes no sense to me why they would try to short so heavily a company that has so many positive things going for it. Usually they pick on companies who have a lot of debt and are seeking equity financing to continue as a going concern. That is definitely not the case here. I just keep buying at these prices. I know in a few months when the audited results are out, the buying will just be too great to keep this stock price down. At that point, if we have a short squeeze. We will all end up filthy rich. I from talking to professionals in the industry, that if a true short squeeze took place you could see this stock over $18 dollars. I am not banking on it, but what fun it would be. I'm just looking to see this trade at a fair market value between 18 and 25 cents. At 22 cents that is 31 times your money at these prices. And I see this just a few months away. Even if it takes a year or two, who cares. If they continue as a growing company I see even $.50 to a dollar possible.
Good luck to all longs. Keep buying. Keep the faith. And keep in your head how much fun it's going to be when the short squeeze finally comes.
