I think that trying to figure out the trading in CCSI is like trying to count the angels on the head of a pin. I believe that there has been accumulation by some rather deep pocketed investors, that are making a bet on the long term, and are of the opinion that the deal is the beginning and not the end..
I doubt if anyone was buying because of the split, and correct me if I am wrong, but everyone seemed to be negative on the split last time I looked.
Last month's short interest was 605,000 shares, and there is a new large short seller that has surfaced this week. He was keeping a lid on stock most of week, and I am guessing he shorted over 100,000 shares. Why, who cares???
What about the deal, and when is the deal? The first part is easy, it is going to put CCSI on the medical map. It is going to bring a stream of revenues and earnings for the next several years, on a highly predictable basis. Upon announcement, the terms of the deal will allow the pros to do their models, and hopefully follow with research coverage. If I were a medical technology analyst, which there about 30 on the sell side, perhaps many more on the buy side, I would have to at least have an opinion on CCSI.
Also, upon signing of a deal the publicity that has so long been non-existent should surface.
A PR effort by CCSI will ensue, and a credible one this time.
Going back to the shorts for a minute. I know this is a lesson in frustration, but it is my guess that pre-split there is a float of about 1.5mm shares in CCSI, and almost half of that amount is short. People keep talking about selling on the news, perhaps the shorts covering on the news, but from where? This is going to be a hell of a lot higher on the news, and after the news it is going much higher, perhaps quite quickly. i have said before someone is going to get killed, and it is going to be the shorts, because they have not a clue what they are doing. If some of the morons who post on the various boards is any guideline, believe me they are clueless. |
