That is correct. The short sale transaction volume is what is keeping a lid on prices and keeping any momentum from developing in RFMK.
Probably much of the increase in the O/S over the months has been from conversions of preferred shares and those become restricted shares which cannot be sold for an entire year. If the T/A SS numbers from a few days ago are right that the O/S is now 1,266,613,736 then there is not much to worry about anymore because as I stated in an earlier post, doing the math on the Q2 report the projected O/S by the end of this year was going to be about 1.3B shares and so we see as of now we are only about 34M shares away from that target. That would mean only 2.6% further dilution for the rest of the year from current levels, that is not very much dilution to come so nothing for longs to panic about. If in the coming months we see the O/S move much much higher than this target number then we longs would know that the company is diluting directly and that would be cause for alarm but for now its apparent that because the short sale volume is greater than half of the daily total volume, shorts are accruing overnight and this means market participants are actively gaming the stock in a gamble to the downside; amidst low buying volume and interest in the stock, it simply shows how easy it is to hold this stock down. Dilution is not doing much to the stock price at all at these levels. The overall long term dilution over years is a basher favorite to rant about but its a weak argument because rampant dilution over the years for any micro cap start up company mirrors this exact chain of dilution. Its a moot point. I would say the current share price is the illusion and its primary caused by low buying pressure coupled with gigantic short exposure and pressure.
$RFMK!
