Hedge funds like to open both long and short positions simultaneously in their portfolios in order to hedge their bets. If I were doing that, I would open my short positions first, then open my long positions. I think that some of that may be happening. I think that there are a few big money people taking some serious interest in this stock. In my opinion, I think that this stock has the best long term opportunity I've seen in a stock. But don't put all your eggs in one basket.
These kinds of short positions don't do all that much for the company, but is setting the stage for a later date when nobody can open short positions anymore because the stock is so tightly held. The hedge fund will drop it's long position and screw up the pps while making a fortune off of those who are slow on the trigger.
I don't think that this kind of strategy is a very cool thing. In fact, I think that it is a very "NOT COOL" thing. But when they balance the long and short evenly, it's actually sort of a neutral force on the stock price. I am not discouraged by the recent trading activity. I am actually quite excited to see the stock become so active. And, like others, I will continue to increase my position while the price is low.
I am not an investment advisor, do your own DD. OTC Stocks are extremely risky, but can also be very lucrative. Good luck to all.
AI
