Cytodyn Inc (CYDY)

[jimmy667]

Stocks of pre revenue companies under development are analogous to undeveloped real estate except the long holders of the stocks have no property tax bills to pay. CYDY is not marginable so longs are not on margin and most long holders likely much greater than 90% have no margin debts on CYDY while all short holders have a minimum of $2.50 in margin debt on every share they hold short. That $2.50 per share can be liquidated out of the short holders account in a flash while long holders can and have been accumulating at all different prices averaging both up and down dollar cost averaging over multiple years time. It can go back down to $ .33 and long holders can simply buy more or continue to hold. If CYDY appreciates 5x or 10x on a partnership deal over night a short seller, and 100% of short shares by their very nature are all on margin, could lose all the securities held as collateral plus face a deficiency. Short sellers of CYDY are a heart beat away from bankruptcy. CYDY is rapidly developing and could ink a deal any day now.
If it takes longer than expected it may just be a bigger bang when it does happen and long stock holders are comfortablely bidding their time while Short sellers are literally sweating bullets while playing Russian Roulette and paying interest on borrowed shares. No wonder the issue of bankruptcy keeps coming up.