Today's short volume leads me to believe that the HFT's using programs (algos) are running the show instead of an actual human analyzing the stock on a day to day basis. The short volume is showing only as 492million becaause the other 100+million traded after 4pm. However, the short volume sold today was 57.8% of the 492million. Who in their right mind would short sell this stock on the same day a reverse split is announced? A computer that cannot read the news regarding a R/S, and is not programed to pick up on such news? And that is assuming that the short sale is actually borrowed shares versus naked short selling. As soon as FINRA approves the R/S the stock becomes frozen with a D listing at the end. The trading stops. So, how would anyone short on the stock be able to cover once trading is halted? I think the next few days we may see pressure to cover at any cost. Which is more of a reason to hold shares instead of selling at .0001 in a panic.
The timing of the share restructure, the manner in which it was PR'd, and the amount of outstanding shares post R/S are very smart and strategic. The B shares are only for voting to ensure that there is never a hostile takeover. The managment can enrich with B shares via dividends or setting a price on them in a sale but the PR today specifically stated that all employee benefits, etc., were to be proportionaately adjusted.
Just my opinion, but thought I would share it for what its worth.
gg
