Shorts Beware! Here's what could go against you:
1. Low number of shares (10 - 11 million)
2. Increased popularity (much more TV time than ever before)
3. Danger that another announcement will follow. Example:
- GERON Announces new cooperative agreement with XYZ. GERN to receive $50 million up front...
- H & Q begins coverage of GERN with STRONG BUY!
- Bayer announces buyout of GERN at $40 share.
4. Even without any announcements, suppose there are 5 million shorted shares (just a guess). Suppose there are now 4 million held by "buy and hold" types. Now if 1 institutional investor really wants in, the price could baloon. And what if several inst. investors want in??? Talk about a short squeeze....
5. Remember, there is no limit on UP! Going down, the limit is 0. Shorts always fear the unlimited potential losses.
With as few shares as this company has, anyone is playing with fire to short for any length of time. Right now, even following the past history, there's not a lot of downside left (12?). BUT, latest report actually ADDS to success. This time they've actually shown longer cell life is possible, and no signs of cancer.
Shorts will rule for a while. Maybe even long term. Just warning that shorting has no limit to potential losses. I've seen many squeezes drive prices sky high. Hey, company could be for real this time!!! DISCLAIMER: ALL situations above are hypothetical and not based on any inside information!!! |
