The thing that everyone in ALYA must understand is that a short sale is actually an investment in the company.
All short sales. naked or covered, must be closed at some point with a buy. The act of selling short is a COMMITMENT to buy at some point in the future.
MM's can abuse their status by selling phantom shares to cause the posted prices to fall.
But in order to realize their profits, they must buy real shares from a real investor to cover. I don't know about you, but mine are not for sale until we're at a considerable multiple, and maybe not even then. One has to invest in something, you know. If a stock you bought at $1.00 goes from 5 to 6 a year from now, you just made a 100% profit on your original investment.
Point is, if no real shares are available, no matter how low the MM's drive the posted bid and asked, they will still be dependent on us to provide shares so they can get out of their short position. If we don't sell, they can't win.
Sooner or later, as ALYA continues to build a great business, and new buyers come into the stock, the MM's must let go. Look at today's release, and all the releases -- have you ever seen a startup BB with so many legitimate positive developments in so short a time?
These shorters are just digging their own grave deeper and deeper. At some point, patient investors will be rewarded with a nice ride on the backs of the MM's (not to mention the potential partner) when ALYA gets bought out, a major joint venture is concluded, or whatever the future holds for this fine company.
Be there or be square. I intend to be there, and the MM's can't have my shares in the meantime. |
