Isn't it ridiculous that the company lost about 20% of it's M.C. with only 1.2 million shares traded ? What about the shorts? With these volumes they still have little chance to cover 13 M. shares. AVNR was also beaten down without good reason (but shorters and A.F.) to $1,80 just before takeover for $17,- .
Just bought some januari 2017 call $3,- options for not too much.
I strongly suspect that the shorts are on both sides of this trade. The $ volume at this price is really small for a medium sized hedge fund, they can push lower and harvest most of the shares they scare into selling. With enough money relative to the $ volume anybody can control the trade. They have the enormous advantage of knowing exactly what is going on. Longs are smaller traders who in any case aren't committing all their cash without seeing a bottom, so shorts have the opportunity to cover by buying up a large part of the volume of sales which aren't their own.
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