Marker Therapeutics Inc (MRKR)

[hanscott]

"If and when they cover it will all happen again at a different price albeit at a higher price. "


It's funny because I had the same thought earlier today. How the total shares short might not change because as a lot of shorts will get burned, at some point others will start to pile on to replace them. But the key is, like you said, it will be at a "higher price." That's fine with me. The shorts can play hot potato all the way up for the next few years.

I don't think there is anything wrong with shorting, it has it's place in the market. They can help prevent a stock from getting grossly overvalued and as a result longs might not lose as much if the company disappoints and the price drops. Also, shorts do help put the breaks on when they start covering if a stock takes a tumble.

I would not be surprised if a lot of shorts placed the last few months were whiplashed in and out a number of times already just like traders going long can experience.

One thing about your analogy that is not accurate is the "setting fire to the house" part. If the company doesn't perform, they're the ones setting the fire. If the company delivers, the shorts are the ones set on fire.