They clearly did not divest of their position in RAYS before they wrote their ridiculous report. As per their disclaimer they are 16K+ shares short since $1.38
SO they already owe a lot of money and their debt is increasing every day, why anyone would listen to a word they say beats me. These guys are clearly desperate and grasping for straws.
Some here have said that shorting should not be allowed at all, and I agree, especially in cases where you have a market maker wrecking crew who’s main objective is to short the stock into oblivion so they can profit from the companies downfall. And don’t think for a minute they play fair, they will go to any lengths to discredit the company, their management and the technology.
In some cases however, this short position actually turns into a huge asset, sometimes the short position way underestimates the underlying company and the resulting short squeeze drives the stock to magnificent highs very quickly.
Looking at RAYS chart it is easy to see that the short position here is getting increasingly uncomfortable. Far from dying down, the volume and demand for RAYS seems to be increasing and the stock continues to trade closer and closer to all time highs.
All shorts currently holding a position in RAYS are at or very near to being out of the money, they are all too aware of how close RAYS is getting to that $2.50 mark, if we surpass that they are looking at unlimited loses. The scariest part of this for the shorts is that 1 good contract pr could drive RAYS over all time highs in a heartbeat and this could happen at any time and when it happens they are going to be in serious trouble.
My outlook for the next week is that the shorts will continue to get more and more aggressive as we close in on the $2.50 mark. Once we surpass it, the short squeeze that follows will drive RAYS very high, very fast.
RAYS could easily see a 3 day run that takes the stock from the $2.50 level to $5+
AI
