Polar Power Inc (POLA)

[southacresdave]

thoughts on short #s.....

The date given (i.e. August 30th) is "closing date" which, assuming 3 days to close trades, means that the actual last trading date was August 27th. As such, we can relate this then to the q2 earnings report---which was on August 9th. The stock went to $6.42 on 65K shares the day after August 10th. It went to $6.60 on the August 13th. Monday's trading would have a closing date of August 16th then. As such, that last stock move upward to $6.60 would be part of this latest short #. ie. The push up was most likely short covering.

If you think of it that way, a lot of the price movement the last month makes sense. Worried shorts panicked and covered a bit and pushed the stock up, maybe drawing in a few momentum traders with them. However, the quarter wasn't really good enough to draw in many new investors looking long term. It was ok, and showed that things were improving, but not so much that there was urgency to buy. As such, once the shorts stopped buying there wasn't much in underlying buying support and the price has slowly dropped. Even them covering 27K shares makes a big difference in this stock. Then whatever traders were in stepped out too giving it a bit of momentum the other way.

The next short number will be for Sept 15th. I wouldn't doubt it goes up again a bit as new shorts saw some blood in the water and jumped in as it went towards and under $6. Gave it that "extra push". The reality is doesn't take much to move this low float stock one way or the other.

All of this is moot if the company performs and shows that revenue is driving towards $10M/qtr.