The short interest figures should be out this afternoon after the close. I am in a fairly good position to know where most of this stock is held long. I speak to most of the large holders, investors, not traders. I have a decent idea as to the float on the stock. I believe the float is somewhere around 2mm shares at this juncture.
I have also had a peek at one of the short sellers hole card, and his reasons for shorting CCSID. These are his reasons.
1. Stock is up on a spike with no news. True!
2. Terrible balance sheet. False
3. No sales and earnings, increasing losses. True, gee I have never seen this before in development stage companies.
4. Stock is being hyped by people like myself with no foundation. True I have been "hyping" stock, but there may be a foundation for this "hyping" in near future.
5. No research coverage. True
6. No institutional sponsorship. ??? Dreyfus doesn't count?? A number of smaller funds own over 2mm shares.
7.Bilirubin is not a big market, and after any announcement there is nothing else behind this stock. I wonder if this person can read, or has done any due diligence .
8. Weak management, no depth in management, I hate women executives. A bet against Darby Macfarlane is not a wise bet if you have any experience with this company, but a chauvinist is a chauvinist.
9. I run a balanced hedge fund and I have to have shorts, and this is great short. So be it.
10.Stock is in very weak hands, and will come out of the woodwork when people realize there is no deal. I hope he has a rich aunt dying in the hospital, and very understanding partners. These weak hands are going to tear him a new whatever.
I am flabbergasted that a professional who has put out such a large short has no clue as to what the hell he is doing. Professional money manager!! I went through my scenario, and he basically said, "You are full of hot air", or words to that effect. I suggested he stay tuned.
"The Ideas of March" are upon us next week. |
