Asia Broadband Inc (AABB)

[hubfan]

To all you newbies:

How a short squeeze unfolds

A short squeeze typically unfolds after a stock's been declining in price for some time. The decline in price attracts more and more short sellers looking to profit from the fall in price. At some point, considerable buying pressure begins to enter the market. It is usually the result of one of two things

It can be an instance of unexpected good news regarding the stock, such as a very favorable earnings report that far exceeds the expectations of market analysts. It can also be that technical traders begin buying the security as they see indications that it is oversold and, therefore, possibly ripe for a reversal to the upside

When the new buying pressure that's entered the market builds to the point where it begins to drive the stock's price sharply higher, short sellers begin to see their profits erode or even worse, their profitable positions begin turning into losing positions

Fearing that the stock will continue its upward move, they move to exit their short positions with the necessary buy order. As previous short sellers enter buy orders to close out their positions, it adds fuel to the buying fire, attracting more buyers and pushing the stock's price even higher

As the stock's price continues to rise, more short sellers are gradually squeezed out of their market positions

The clock is ticking and the coiled spring is is about to explode, hold your shares amigos