Anavex Life Sciences Corp (AVXL)

[Steady_T]

The impact of the short interest has more to do with the daily volume as a practical matter.

The impact of the volume of short shares moving into or out of the market is based on the ratio of the short vol to the daily vol.

Especially if there is the long hoped for short squeeze.

Contemplate this. The short position increases when the share price is at a peak. If you look at the short interest and the share price relationship it appears that the shorts are in between $12 and $6.

Based on a short position of 5.5 mil shares that equates to an estimated short position value of $30 to $50 million.

That suggests to me that the people with the responsibility of overseeing that amount of money also have access to a few million $ to protect that position. Given the low share price and relatively low volume, it should be easy to have a significant impact on the share price.

Is that "the cabal"? It doesn't have to be an organized conspiracy. All that is required is several different organizations with a common interest. They don't need to communicate with each other. All they need is a common goal of protecting their investment. Watching the share price and volume and acting in their own individual self interests will result in apparently coordinated activity.

That easily explains the odd behavior of the share price when good news is released. It will also indicate that achieving a short squeeze will be far more difficult than has been speculated.

It will take a MAJOR event to create a short squeeze that the short position holders can not over come with the application of more money.