Thanks daemon 57. There's lots of talk about how many shares are available to borrow. This may be a true fact when it comes to legal short trading where there is an 'attempt to locate' shares available for borrowing with a promise to cover that borrow within X number of days. I don't recall the number of days. Perhaps someone else more knowledgeable can provide. I think it's something like 3 or 4 days? In any event since there sometimes aren't any shares available to borrow or the terms aren't favorable enough for the borrower there are entities who have the ability to illegally naked short shares. This occurs when they simply sell shares they don't own or haven't borrowed. Because there are flaws in the 'accounting' of these transactions on a grand scale, in order to enforce the covering of these naked shorted shares, these entities get away with it.....UNTIL. The UNTIL becomes very important and is typically something that happens in about 1 of of every 1,000 companies who actually end up hitting it big, i.e., merger, buy out, discovery of that ever-elusive gold vein in the mine or the drug that is actually safe and effective and meets its goals. That's when REAL MONEY enters the picture, and the value of the company drastically changes.
This is where things get really interesting for CYDY. Remember when we saw prices as high as $10.01? Well, imagine you're an entity that was 'lucky' enough to short at or near that price. Let's say you shorted 100,000 shares at $9.00. You're not forced to cover those shares until the price of the shares exceeds $9.00. That's when your 'lucky' self receives a margin call. That's not a good day for you, I can promise you. You will need to either purchase shares from the open market at the going price all while competing with others in the same position as well as the rest of the market wanting in on the action.
But it gets even better. Let's talk about momentum. Consider that shares were shorted at every level from $10 on down to possibly the low .20's. That means that every entity who shorted will be scrambling to buy shares from the open market, again, along with other shorting entities and long investors wanting in on the action. This results in higher volume and higher demand for the shares, ultimately resulting in higher prices. As that momentum increases the tsunami wave of rapid share price appreciation can be a bit overwhelming if you're short and are forced to cover. If you are unable to cover quickly enough then your broker will liquidate your positions to cover. In order to naked short, you have to have a large enough portfolio to cover the kind of position you've shorted. This is where it can really become extremely painful.
So, you're right daemon57. This rocket has plenty of room to move. LONGS shouldn't rest on their laurels though assuming this is the beginning of a short squeeze. There are very intelligent entities that have been doing this for a long time and they know how to play the game and will use many tools to combat a squeeze. A squeeze isn't automatic but it's also not that easy to stop. As Tradinplaces is fond of telling me. Never stand in the way of a moving train.
There will be ebbs and flows along the way during a potential squeeze. Never make any assumptions of continued price appreciation without seeing pullbacks along the way and if you KNOW WHAT YOU OWN (Thanks Black Ops), then you won't let those pullbacks scare you into shaking loose your shares from your possession as the tress get shaken.
There may not be official word on the street driving this current move but it does appear that the market sentiment is such that there is a level of confidence that we haven't seen openly expressed in quite a while. This is ONE train I will not stand in front of as I do know what I own and why I own it. I'm going to sit in the caboose now and whip up some popcorn to watch this event unfold.
All of this is purely my non-professional opinion and should not be construed as investment advice. GLTA Real Longs.
News 
Market Data 
Discover 
