Daily short (Activity) is somewhat different than monthly "Short Interest". This may be confusing to some, so I'll try to explain. Daily "Short Activity" can occur for various reasons. Most likely, a Market Maker ran short of his inventory, while selling shares. This can be a good thing, as the market maker will want to clear his books and could result in the share price increasing, as he buys to close his short term position.
Conversely, a long term short position (shown on a monthly basis) is more indicative of a negative view as to the success of the company and an anticipation of a downward trend for the share price.
Many times during a promo, you will see a spike in short positions by market makers, due to the increases in demand for the stock as a result of the promo. They generally settle these positions in a relatively short amount of time, as required by FINRA regulations. The more important statistic is the short positions held by investors. For this stock, it is rather small and has fluctuated some, but never more than can be covered in comparison to daily trading volumes.
The more pertinent question here is, why would a company that shows no profit, spend money on a promo? And just prior to the promo, why would an insider buy shares on the open market? Are you getting the drift here? If you check back in the filings you will see there are also a substantial number of unexercised stock options held by insiders. I am not saying this is anything nefarious. It is part of the whole, as to how business is run and rewards to the management of the company. Look up the numbers and you will conclude that there is a substantial amount of money to insiders if they were to exercise those options. And shares would be dumped into the market as well, stalling any run perpetuated by the promos. Sounds logical to me, but only a supposition on my part.
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