Looking at the market depth, one would need to short sell 11 mil shares just to move the stock down 1.5 cts and that would cost that person/s abt $5.2 mil. Considering commission, stock borrowing cost and other fees at a conservative of 10%, it would already be 4.35 cts cost (taking the strike price as 43.5 cts). Can someone enlighten on the rational behind their short action and the expected bottom? Also, it is expected to attract an even stronger support below 42.5 to 40 cts. To make it harder, the company may declare better performance this quarter/year as more contracts were secured and they have bottomed out since, One may need to refer to reports in the last 2 quaters to see this trend.
Anyway, this is just an observation. Pse DYOD. Regards
If you look at the short sell volume, you will find that not all the shares are sold by shortists (even on those days when share price drop with high volume). You cannot just calculate base on market depth. Shortists have ways to "force" other traders to sell their shares. Shortists are very patient and they have their ways to do it. Will share more when I have the time.
2,004 lots done at 43.5 cents and only 214 lots done at 44 cents. So it is clear that shortists shorted some to hold down the price at 43.5 cents 44 cents and there are some other people (victims of shortists) being "force" to sell their shares at 43.5 cents.