A bit of good news to hold on to.
In May there were 60,000 shares sold short.
Now there are 880,000.
Not huge, but it is about 1/15th of current outstanding shares.
If it really starts to jump up and climb, at some point those shorts will have to buy to cover, forcing the price up even higher …… which will force more shorts to buy and cover, etc. etc..
Most of those short sales were shorted between (about) $12.50 and $11.25, so the pps would have to climb near that bottom price before the shorts give in and start to cover.
But if covering starts at about $11 and it keeps climbing past $13, how much $pps would 880k shares being bought (outside of normal buying as investment - PLUS other buyers for other reasons) add?
Based on average daily volume and what price adjustments have happened based on that volume, could be (maybe) 50 cents to 75 cents per 75,000 shares, so that would be 50 cents to 75 cents times 12 = $6 to $9 …
IF it climbs past $13 and keeps heading up, so let's say (just) investment buying takes it to $15, if all shorts cover, it may wind up being $21 to $24.
I know that $6 to $9 might sound like a lot, but you have to remember you will have other kinds of buyers getting in, the momentum guys, the trend is your friend guys, the short time traders, etc..
Now, of course two things will also be happening that will try to dampen that a bit.
#1 profit taking
#2 new shorts selling to establish new positions at higher levels.
Should be an interesting couple of months to watch, (or maybe just a couple of weeks).
Something tells me that if it hits $11+, do nothing but hold (or buy more if your feeling ultra-confident), then just see what the next days volume is, if you have moves up in pps on large volume, stick with the hold plan until volume lightens, then make your decision as to whether to hold or (OK, I won't say it) anything else.
