So I have a few thoughts I finally want to get out there on a Friday. I have thought a good bit about what the end game might be for the shorts. I can't really figure it ... unless they can seriously damage the company in some real way. I say that to say this, I am not sure 'they' believe they messed up in May. I think they believe they are still getting it right in June, July and going into August.
1.1 plus million shares is a lot to cover. Do they see this as an ultimate gamble to take to December hoping for LWLG to not develop a 50 Gbps modulator? I am not so sure. I don't believe they see the danger really believing most of us are dreamers (not half wrong there ; ^ )
Do they believe LWLG is small, will always be small, and will never crack or make a difference in a world of Behemoths in the tech world? (I personally think this is really what is going on) I mean, nobody has done this at a price point that has attracted market attention and response. It's a serious bet to believe others will find a solution faster than LWLG. Again, I think they are head strong in their disbelief that LWLG can't crack the world of giants. If LWLG does that, it's a generational type story. I mean what are the odds of that? Like millions to 1. So why not bet on that, and heavy! Why not double down like they are doing now... Of course, many of us dreamers shared that fear for a long time. I did as a shareholder for 8 years, only really having conviction in Dr. Lebby coming on board and what the company has accomplished in the last year. Which I believe is so far beyond significant, but shorts could easily at this point be saying "See, that didn't change anything, they won't crack the industry, and it's just a matter of time before they fail and we recoup a serious amount of money)
Can they plot in some way to damage the company in a real way that goes beyond what gets talked about on a message board? That's the only part that scares me some. Desperate people do desperate things. But I don't think they feel desperate on July 28th. I think they see it as a slam dunk that they are going to win.
Does any or all of the above make me just a little nervous as a shareholder. Sure. I mean no matter what is posted here, it won't affect my decision to hold. I have held for 10 years now with a small 6 month window where I stepped away. When Dr. Lebby stepped in, I stepped back in. I am quietly very confident (and every once in a while very publicly confident). I see time as our friend now on the development side. I believe with all the shares I hold that in time, a few months even, we will see the 50 Gbps achievement that will change EVERYTHING.
The interesting dynamics here now are this... LWLG has a cult like following. What I mean is, we have about 3800 shareholders who know the story and most of us have been here for a while. It is hard to dissuade this group as so much research has been done, etc. Many like me will ride this out, and believe strongly that we are mere months away from creating the kind of shareholder wealth that we have pondered for years and years. I honestly believe that the story now has potential to be much larger than I ever anticipated years ago. So this 3800 member group for the most part believes they are all holding lottery tickets, have researched the heck out of the market, technology, etc. We will not panic and sell.
Because the share price hasn't sunk, not more than from 1.60's to 1.20's, I honestly believe the ones shorting the stock stills see this as a great opportunity to short and recover money when the company doesn't produce. What I mean is, I think both longs and shorts here REALLY believe they are on to something and are licking their lips. So I expect that we will continue to see an increase in a short position (I guess there are that many shares available on margin accounts - that's the one thing any shareholder can do, is call and ask (regardless of whether we have a margin account or not) to just confirm that our shares are not being borrowed).
I think we will only see this continue and grow more heightened in the coming months until a.) the company doesn't do what they said they would on time or b.) the company announces a breakthrough and there is one massive short squeeze.
I think we will be watching something, perhaps historic, especially if the coming months is met with the break through all envision. Now remember this... one of the things Dr. Lebby said he was excited about as he took over was the company achieving milestones on time, and even ahead of schedule. I can hardly wait to see if that pattern will continue.
At any rate, I now expect the shorts to only increase their positions until something happens one way or the other. In the same way, I expect the share price to hold steadier than they might expect as so many of us have a very strong conviction of where this is possibly going. It is setting up for an epic end which ever way the story is ultimately written. I like the long side of it though, enough to keep adding...
Best to the longs on a Friday,
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