Big short squeeze on FOSL this morning. 50% of the float was SHORT -- so today a short squeeze happened and the stock is up 68%. This is NOT news-driven.
This is why it can be a very good thing to have a significant short position against a stock -- because when there IS news, say for instance a successful clinical trial result or news of a partnership -- the short squeeze can be massive. Not only do people want to buy the stock because of the news, but the shorts panic (as they should) and they have to buy at whatever price they can.
And when there is very little supply, because knowledgeable shareholders are not willing to sell cheap -- well, that can fuel a mammoth short squeeze.
*ahem ahem**
This is why it can be a very good thing to have a significant short position against a stock -- because when there IS news, say for instance a successful clinical trial result or news of a partnership -- the short squeeze can be massive. Not only do people want to buy the stock because of the news, but the shorts panic (as they should) and they have to buy at whatever price they can.
And when there is very little supply, because knowledgeable shareholders are not willing to sell cheap -- well, that can fuel a mammoth short squeeze.
*ahem ahem**
5