Nah, that can't make sense. People who short equities like AVXL, a startup biotech with nothing to sell and an unproven technology, are certain the company is destined to economic oblivion. Lots of posts on this message board confirm that. Because shorts have taken a short position (with borrowed shares, for which they pay a small loan fee) they are certain that when Anavex tanks, their short positions will yield big cash gains. Shorts are smart; they follow the real Anavex experts who post here. They have no concerns whatsoever.
But, ya mean that some shorts are getting antsy and are starting to cover? Who 'da thought?
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