I doubt that any announcement is coming Friday. I previously have been told by the company that a routine meeting was expected, but then again I was told that about 10 days ago. I think a better guess is for something in the next 1 to 3 weeks.
Nevertheless, what we witnessed today was a classic short squeeze if there has ever been one. It reminded me of the incredible short squeeze in Presstek which resulted in the ridiculous price of $200 or so. IMHO this squeeze has at least 1 or 2 more days to go. You could see the daytrading sharks build up momentum and you could practically see the blood in the water. For any CCSI short, I believe there will be a great deal more blood on Thu. I do not wish anyone ill will, even the one or two folks on this line who have disagreed just for sport. However, it doesn't matter who they are-if they are short, fundamentals and the CCSI story have temporarily gone out the window. Many of the daytraders quite predictably took their sizeable day profits at about 3:30 or so and retreated to the sidelines until Thu. But I am willing to bet that they and many others whose trading systems will alert them to today's trading will be out in FORCE. There is nothing like someone else's blood in the water to invoke a feeding frenzy from the daytraders, professional and amateur. They know that, similar to the margin calls which helped to drive the price down into a semi-death spiral only a few weeks ago (remember $11 a share?), the shorts are now caught up in a margin-call induced upward spiral, which we saw to some great degree after 2pm today.
I have been long CCSI for 2 years because of the possibility, which is now a reality, of FDA approval and a soon-to-be announced distribution agreement. But for those of you who are interested in daytrading CCSI for 1 or 2 days, be ready early Thu. I would certainly not be surprised to see a new high for CCSI as the short squeeze rushes on. For those with longer time horizons, remember that the true underpinning of this squeeze is Fri's stockholder vote, and the subsequent announcement and then stock split. Again, all IMO. |
