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Re: leifsmith post# 12884

Wednesday, 07/31/2013 8:58:36 PM

Wednesday, July 31, 2013 8:58:36 PM

Post# of 30990
Agreed. Especially if the shorts are now required to possess (or at least have access to) the actual shares they are shorting...as I now believe is the case.

You see, I have a theory that some of the hedge funds are now working the opposite side of this practice...meaning that they are actively seeking companies that are heavily shorted and going against the shorts.

Why would they do this? Simple....TESLA.

It's pretty obvious that those hedge funds that went against the shorts during Tesla's meteoric rise made a ton of money by buying the stock on the way up.

So now it's like shooting fish in a barrel. They just find companies that are heavily shorted, and start buying shares at rock bottom prices. As the share price slowly begins to rise (as it did with Tesla) those shorts are forced to pay a higher interest rate for the stock they are shorting. Eventually the premium gets too high and the shorts are forced to buy back their position(s) - thus causing a parabolic rise in the share price.

Of course, this is just a theory....but then again, how do you explain all the MILLIONS of shares that have been purchased over the past two weeks - causing STSI to go from $1.15/share to its current price of $1.83?

News is eminent.

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In general the collapse the shorts want has not happened in spite of an increasing short interest week after week. From the low of about 1.16 to the $1.80s -- they have failed to collapse the stock. I should have been a little more specific. I don't regard this fall from $2.05 to where we are today as a significant triumph for the shorts. They are in big trouble and it's going to get worse for them.

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