Here I am again, my friends, and the soup is simmering away gently and is starting to taste rather good.
Since the reverse split, trading volumes have remained consistently extremely high. Virtually no short positions have been closed out or had to be covered since then. Now we have a situation where, due to the macroeconomic effect, the total number of shares has risen rapidly. In fact, it is simply no longer so easy to push the price down as much as one likes. For weeks, the aim was to keep the share price below one dollar. The short sellers managed this successfully and were even able to push the share price down considerably before the reverse split. Only now are they, in themselves, rather aimless. I still believe that, as things stand, the company is undervalued despite the figures. The brand, the know-how and the production facilities alone are worth more than the share price. Furthermore, there isn’t a single analyst estimate that isn’t above the current price.
For over 48 hours now, all available pages have shown “0 Shares to Borrow” with the borrowing fee remaining unchanged at 20%. This is extremely interesting it’s hard to get shares, but no one is trying to borrow them right now so the borrowing rate doesn’t suddenly skyrocket.
I am not saying a squeeze is definitely coming, but things are really heating up. Nearly all the parameters here would favor a squeeze. Contrary to everyone who foolishly claims it will never happen, it doesn’t have to happen, but it could at any time. You’ll be right about your theory for exactly 360 days until those 3–5 days come when it does happen. I also have no problem waiting for the turnaround, but the fact is that a squeeze is definitely not off the table either.
To be perfectly clear once again: I’m not saying it has to happen and certainly not on those specific days but given the current situation, I believe it could escalate very quickly just from a few additional purchases. What exactly do the shorts plan to do then? Everyone is already positioned, and despite 1 million shares being shorted outside the public markets, the price has continued to rise for the past two days. I think the bulls have the advantage from now on, and to be honest, I’ve been waiting a good nine months for this. Let’s keep a close eye on the whole situation over the next few days.
I bought more last time at $11. Little by little. Target price: $120 (How can you wage a war without ammunition?)
If a squeeze were that easy to take with you, we'd all be millionaires, my friends