HEB, Hemispherx Biopharma (AMEX)NEW Message Board

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Biotech / Medical : HEB, Hemispherx Biopharma (AMEX)NEW

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To: Gerald Walls who wrote (549)	11/4/1998 12:44:00 PM
From: Marty	Read Replies (1) of 857

I don't know anything about IPMCF or shorting in HEB going on before the short sale recommendation or how much Asensio can afford to lose, even with his track record. I confess to a little gloating as well, which wasn't very nice of me. The thing that does interest me about the post is the math on the short position. This situation probably parallels the IPMCF situation as you described it and what may have been discussed regarding the shorts running for the door, The mathematics involved with a very large short position in combination with what I believe to be the trading tendencies of short sellers makes for a very explosive upside potential for the stock. Given that Asensio is unlikely to tell his followers when he will cover, there is a mutual suspicion circumstance. It depends on them all holding together and not covering because a runnup could ensue if they all bought back their shares at or near the same time. So who can stand the heat the least? (Old proverb: "When thieves fall out, thefts are discovered.") The same thing is NOT true, I submit, on the long side. There is X amount of stock that is held for long term investment, regardless of the day to day fluctuation. A portion is held by insiders and the rest by a whole range of strong to weak hands. The longs can hold to zero and that is the end of it. There is no end to the amount the shorts can lose. Basically, I think ALL the shorts check the price at least once a day. That is not true for the longs. So the short position is a lot more tenuous by nature and this is probably borne out by other similar examples. Aside from telling what happened in other examples, what is wrong with this reasoning on what causes short squeezes? Why isn't HEB ripe for one now?

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