Got this from herman Sleegers today
always interesting
Translated from Dutch by Deepl
Dear,
Just an explanation of the recent price development at Lightwave Logic. It is an undeniable fact that the change in the Fed's monetary policy triggered a sector rotation. A clear outflow from high risk especially in technology with little prospect of future earnings to stocks with a clear and consistent income. It goes without saying that Lightwave Logic was also subject to that movement, but there is much more to it than that.
Currently, the short position as of 31/12/2021 was announced and for LWLG we saw a doubling.
Date short position days to cover
31/12/2021 4476575 2,43
So the institutional entry was mainly realised by doubling the short positions. Of course, these positions will have to be closed at some point, which is probably a delicate exercise given LWLG's limited float. There is also a time lag for the announcement of short positions, and I am almost convinced that we have had a noticeable increase in the first days of January. The "days to cover" figures are undoubtedly still highly underestimated as most of the daily volume is counterfeit stock that market makers pass to each other. Their short positions have to be closed on day 3 and if that is not possible they pass them on to each other. So if we were to calculate the days to cover on the float of real shares, it would be very significantly higher.
The effect of short sellers is also clearly noticeable on days when there are short restrictions. When a share price has fallen more than 10% intra-day, shorters are only allowed to take positions on the next trading day if the share price is higher than the highest bid price. This significantly limits the activities of shorters and what this means can be clearly seen in yesterday's lwlg price movement. Little manipulation and a somewhat higher price rise than the rest of Nasdaq given LWLG's higher beta. Today the restriction is lifted and we may see the "hanky panky" behaviour of the market makers again with a negative effect on the price, time will tell.
The moral of this story is that, as an investor, you better focus on the technological progress and less on the price. And given the recent news reports from LWLG, this progress is on course and we are getting close to the target, mass commercialisation. I refer to a statement by COO Jim Marcelli during a lunch meeting at the end of 2021: "It will be boom and there is a deal like it was with the Nasdaq listing". If that "boom" comes with the current short position, it will be more of a "big bang" and it will be very interesting for loyal long-term investors to follow the price. As said, focus on the technology and arm yourself against the manipulative behaviour of the "Wolfs of Wall Street".
AI
