So, the short squeeze talk has surfaced again. Here's my guess: it ain't happening. I expect some good news will move the stock a few points here and a few there, but I am not holding my breath for a 10-15 point pop 'cause of short covering. Hey, if it happens, I'll be happy to eat my words. I have been in this stock for over a year and have listened to people talk about the squeeze that is about to happen. This stock has always had a tremendous short position and will for some time, unless Viagra falls fo the planet. The company has a lot to prove and until it does, I am not expecting any drastic changes in the short position.
I don't think FDA approval is going to be good for much pop. I expect an initial run up (a couple of points), but I think it will settle again. This stock will continue to be depressed until the company can show an ability to market its product (i.e. sripts up). This is where the story lies, IMHO. I believe the company can do just this, that is the only reason I am long. With international approvals continuing to poor in, if VVUS can establish itself in the US, I think it will be successful everywhere. The next few months should be telling.
Blowin' on the dice hopin' for seven,
Colby |
