because they have to Cover their "Short Positions" !
* They lose money as the stock climbs !
* Your Buying, Forces them to Buy,
and their Buying, causes the stock to Climb Higher !
The possibility of a "Short Squeeze"
Short Squeeze - What it is:
A short squeeze occurs when the stock's price doesn't decline as anticipated.
A short squeeze is a situation in which a stock's price increase triggers a rush of buying activity among short sellers.
Short sellers must buy stock to close out their short positions and cut their losses, which results in a further increase in stock prices, which compel still more short sellers to cover their positions.
The possibility of a "short squeeze" is one reason some analysts look at a high amount of short interest as a Bullish Indicator.
Short Interest is the fuel, performance is the fuse, says ShortSqueeze.com
On December 5, 2017, Adaptive Medias, Inc., a Nevada Corporation (the “Company”) entered into a Settlement Agreement and Stipulation (the “Settlement Agreement”) with Livingston Asset Management, LLC, a Florida limited liability company (“LAM”),
pursuant to which the Company agreed to issue common stock to LAM in exchange for the settlement of $696,606.85 (the “Settlement Amount”) of past-due obligations and accounts payable of the Company.
CEO: " Adaptive Media has about 1300 shareholders, a broad base, which is very important, and something that is highly valued by the prospective buyer / merger company."
"The clean up work is almost finished"
"I can't get into the details, but what's coming will be soon."
the private operating company shareholders exchange their shares of the private company for either new or existing shares of the public company
* At the end of the transaction, the shareholders of the private operating company own a majority of the public company and the private operating company has become a wholly owned subsidiary of the public company.
A “Reverse Merger” allows a privately held company to go public by acquiring a controlling interest in, and merging with, a public operating or public shell company.
A “shell company” a publically traded company with (1) no or nominal operations and
(2) either no or nominal assets or assets consisting solely of any amount of cash and cash equivalents.