Bill, I am trying to understand the rationale.
REFR has been a great stock to ride up and down. If the trend continues, you might be able to buy back lower. But you claim an average of 11 1/2. It closed at 14 7/8 and was over 15 much of the day. We have a new 52-week high with huge volume and strength.
The stock has been going up every day for quite a while and is up tremendously since Dec 2 at 9.5. Sure, it is tempting to short it today, but also very dangerous. Many things have changed, whether you believe it or not. I, and quite a few others I brought in, have been buying and we won't sell under any circumstances and will buy even more as the shorts try to knock it down. The longs have been heartened by the new events and are going to hold.
And, most important, I am very certain the news of real deals and CASH is coming out sooner than you think.
So, I have to ask what your exit strategy is. I know mine, and will re-evaluate regularly. But, I am puzzled at yours. I don't believe the stock can be shorted easily below 12 at this point, if even to there. And, if you can get others to short now, you could cover with smaller losses, but then they won't be able to cover as you drive the price back up while competing with me and others to snap it up.
All around, I see a losing proposition.
And, tax losses are only good in the year you get them. Last trading day for this year is Friday.
I suggest you would do best to cover ASAP. Then, if it rises enough, you can decide if you dare short it again, or attack easier prey. This one is no longer easy. If you check the Yahoo board, my buddy dark-side_of_the_glass gave fair warning to shorts long ago. I doubt many listened.
No, I am not telling you what to do. You could always turn out to be right. I am sharing both my perspective and that we are on opposite sides of this one.
Good luck with your other investments. As I said on the other board, I do admire your integrity on some things.
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