Short interest from my source, shortsqueeze.com, doesn't show any significant increase in short positions but this data is updated only once per month by the exchanges. My best guess is that short interest has increased since the last report and some shorts are having trouble getting shares to cover.
It appears that the naysayers are alive and working to short the stock. This depresses the stock price but there is a price to pay. At some point, soon, the books have to be balanced. Think of it as a rubber band getting stretched tighter and tighter. It doesn't get to the point of breaking the company very often, by driving the stock price so low the company cannot do business, but usually will result in a rapid rise and overshoot on good news.
It appears that shorts honestly believe BORK is a scam and believe that they will make lots of money as BORK stock goes into the pennies. The shorts also play on the emotions of the longs. If the shorts can depress investors, especially those who bought in at a low price, to the point of getting them to cash in profits then it becomes a short (down) market. Also, if the shorts can get new investors to shy away from the stock then the short can continue to harvest large profits. With pending results of he cert process the shorts have a small window to harvest.
For the longs this is a mixed blessing. If the longs sell on the depressed price they lose profit and permit the shorts to buy to cover at the lower price. If the longs hold on until the positive news comes out then the stock goes up and the shorts have to cover by buying. Thus, the stock overshoots the price where it would normally peak.
IMO "failure to deliver" is a good thing for the longs if you believe the stock will go up. When the good news comes out that rubber band is going to snap very fast. Any shorts would be in dire straits to cover without taking a real beating. With a fast up moving price, the short would be forced to make "market order" buys or their broker will make the buy for them when they cannot make the margin call. Last time I looked, shorts had to have a minimum of %50 of the stock price to short. Margin call is at %25 which is the point they either come up with more margin or their broker will close them out. Some brokers have larger margin requirements but the numbers I quoted are the minimum requirements.
So, pick your side of the battle according to how YOU believe after doing your DD.
