Replies to post #89789 on Innovation Pharmaceuticals Inc (IPIX)

[edge]

Get up to speed by reading Dr Citrati's expertise on this subject. It does wonders for one's portfolio, psyche and dispelling 'short' nonsense.................

[Drano]

Some of the short sellers are in it for a quick scalp, maybe for as little as a dime, so they jump in and out of their short positions. The same people might short, cover, and roundtrip like that several times in the course of the day. I knew a guy who did nothing but scalp Amazon all day -- he might do 10 trades, some short, some long, and often it was for just a dime or so.

[Waverunner1]

Exactly, with short interest at less than 2% of the float it can not be considered a heavily shorted stock. I would consider even 10% to be quite normal for a small development stage biotech. A heavily shorted stock in my view is something upwards of 20%.

If you take a look at some other companies you'll find that that is a relatively small number, which can be interpreted to mean that the market doesn't find it an attractive stock to short.

[TheHound]

Spot on. Thanks LR.

[58nout]

Thanks LR for your time on this thing and Waverunner and BooDog as well. I just have this mental block and for the life of me cannot understand anyone's betting that this company will fail and along with it, it's SP.

I've said this before, but I have a brother-in-law who spent time working at FINRA and he still just smiles at me when the subject of CTIX and OTC pinks comes up. He'll also be the first one to tell you that manipulation still occurs on NASDAQ where he also worked, but it's a lot harder to hide it there and is certainly less rampant. He equates the little board to the wild west.

I'm short to me means that I'm only 5'8" and even that was only until my first trip to Italy where I found out that I was just the right size. In fact, in some towns I was tall. tehe

GO CTIX

[John B]

LR, Nicely done. One comment though on the days to cover number. Great job of providing the definition, but I disagree somewhat on the use of the 1.62 days number. I think this number is too low based on using the average daily volume of 813,302. This number is skewed based on some abnormal events of late. Abnormal volume caused by two bear attacks, the spleen lesion PR (2.2 million share day, followed by 1.5 million), and a almost panic crash in the stock. For example the last two days CTIX has averaged 180,000 shares volume, which would put the days to cover number at 7.2. Yes, I may have skewed the number by using two low volume days. One point I am trying to make is the impact to SP based on short covering is dependent on the trading environment. There is a saying on Wall Street "Never short a dull market". Basically that it is not wise to short a market/stock during low volume, thinly traded days.
Once again, very good post. Thanks!