Replies to post #12888 on Rock Creek Pharmaceuticals Inc (fka RCPIQ)

[NukeJohn]

I agree with you. The major players on Wall St. have got to be looking for the next TESLA short squeeze situation, and STSI is a very good candidate.

You see, I have a theory that some of the hedge funds are now working the opposite side of this practice...meaning that they are actively seeking companies that are heavily shorted and going against the shorts.

We could see a battle of Hedge funds with some going long against the funds currently trapped in a large STSI short position. If there aren't many shares available to short, and the investment banks are leery of offering naked shares (which I think may be the case in this environment), then we could see rapid movements up (which has been STSI's history).

My big concern for the short term is that Star is vulnerable to a corporate raider. Corporate raiders could care less about the shorts (or the longs for that matter). They just want to make a quick buck, and they know that an offer of $6-8 would not be accepted by the Star BoD, but it would put the stock in play and we could see a quick rise (possibly even a so called short squeeze). I would hate to see a hostile takeover be successful...even if the price was $15-20, because I think a year from now the stock will be a lot higher than that. Most retail investors I know would not tender their shares at a cheap price. Most of them are Anatabloc users and they appear to be in for the long run.

But, who knows what parties have been accumulating stock over the past year or two. Those parties may be tickled with $10 or $15/share, and a tender offer might be successful at a price I would not be happy with. That's why I am hoping we see some good news in the coming weeks. IMHO, if the stock was back around $5, it would be less vulnerable to a hostile takeover.

Here's a weekly chart of TSLA which has experienced a short squeeze of epic proportions.



JMHO,

NJ

[leifsmith]

Interesting theory ... might be correct ... I like it.