<<My guess, though, is that there are still
vintage shorters out there who want the price to go
to zero or, failing that, to stay as close to zero
as they can push it for as long as possible.>>
Tom, I agree with your analogy. Shorters, in general are smarter than most of the investing world, for it is much harder to make money on the short side in a bull market like this one. Even though these, as you call "vintage shorters" more than likely will never go away, I still believe strongly on basing my purchases on fundamentals, and fair value. These two factors will almost always produce results as a bottom line. Fundamentals have changed with IOM and likewise fair value has to change along with it. The shorts can only control this thing for so long before these two factors kick in. I agree that this flat Q1 announcement opened up a window of opportunity for the shorts, but I am certain that it will be short lived. This announcement planted a small doubt in the minds of investors( whom were just about ready to jump in IOM with both feet). The shorts being very savvy knew just what to do when this happened. Like a lion who preys on the weak, they were all over this stock thus the 40% retreat! The biggest problem they face now is that Q1 expectations have been lowered and IOM is making a ton of $$$$$. That along with high short interest, and look out shorts. This is why I am confident that though this stock will take many days to fall, it will only take a day or two to climb right back to its 52wk high. Only the savviest of shorters will get out before this happens. The rest will be handed their lunch.
Ron Dior |
