Thinking a little more about ASTN short position:
Let's say there was an average selling price of $15 for almost
all of the shares that have been shorted. And let's say, the average cover price has been around $10. So to date, the shorts in aggregate have made approximately $5 million. Not to shabby. On the other hand, if the stock goes to $17.50, just under its old high, when trading begins in August. Shorts are now underwater for $2.5 million.
I wonder what their threshold of pain may be? Now, let's have
another DELLusional scenario: Ashton gets some coverage from a
real investment house; say, Gruntal, and this adds further
legitimacy to the stock, fund managers at Gruntal and other small-
cap fund managers take notice and begin accumulating. Won't be long until the shorts are worried, if not trying to cover.
VWAP goes live and by November 30th, 10 million shares/day are traded
on the new system. (Oh yeah, forgot, Gomez Advisors announces their IPO for January and the Hong Kong exchange begins to get interested in using ATG for real) The overall US market has corrected 23.5% and ASTN is now at $25/share. Shorts are wondering: whatever happened to that nice $5 million profit they had in July.
It sure is fun to be DELLusional. Maybe I should start doing drugs. This scenario might get even better.
Happy trading everyone! |
