Yea, well, it is also true that at a higher price,
Post# of 11899
Yea, well, it is also true that at a higher price, shorters feel more confident that they can possibly cover lower which instigates greater volumes of short sales. The other factor which typically increases the level of short sales is the overall volume, as overall volume increases the short sale volume usually increases as well, again because the shorts feel that it will become easier to cover with increased volume. At extremely low prices though, the volume does not matter so much because the risk vs reward (how many ticks the stock could move down) is not very good. It is true that the lower the volume is the easier it is to manipulate, however it also is more difficult to cover in anemic volume so its a delicate situation always. The shorting market players (which we all know is not a bunch of retail traders because of margin requirements) are taking big risks and gambles when they short RFMK with all the positive catalysts going forward. The thinking probably is that as long as they attempt to keep a nuetral book short/long sales, they can do it as much as the volume will allow. That can last as long as you have long shares that are ok with dumping to you lower when the price is manipulated down quickly, but eventually the low volume shake outs begin to fail in scaring out shares, so the prospect of making money on the short side begins to fade. We will see what happens. It should be interesting to watch to say the least. I think the MJ legalization election momo should increase volumes. The question is, will the market players continue to take bigger and bigger gambles and keep shorting nearly half the volume every day. My guess is that they will not keep doing it because as volume grows it will be a better risk/reward scenario to just play the spread and allow the large volumes to push the stock up and around naturally.
GLTY
$RFMK!