Any stock with a low absolute stock price is, all other things considered, inherently riskier than one with a higher stock price. So, it is not unreasonable, in general terms, to short a low priced stock. The upside is still $2 for them. As for the downside, no-one will make a take out bid out of the blue at, say, $10. Why would they? First of all, they would buy as much as they could in the market. That would push the price up and give shorters an opportunity to close their positions.
Anyway, as we have just seen, yet again (weary, isn't it?) is that without actual earnings, rapid increases and rapid decreases go hand in hand.
Yes, Wave is getting old. I first bought in 9 years ago, but what the business is now is poles away from what it was then. If you bought into the micro transaction processing model of 10 years ago, then why are you still here now. That died years ago. If you stayed in over the recent years because of the Trusted Computing angle, then why sell now? Only you can evaluate the tax loss numbers insofar as they apply to you. I don't know what the tax loss laws are in the US, but can't you sell now (before March 31) and buy back in sometime in the new tax year without them being related transactions? Come to think of it, maybe lots of people selling before March 31 for tax loss reasons might have a depressive effect on the price! Maybe the short termers know this, and are anticipating the expected sell-off.
So you want to frustrate their efforts? Answer: don't sell now! QED
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