This stock has just 1.9 million shares floating and a short ratio of
2.69, which means there are more than 2 ½ shares shorted for every shared traded daily on regular basis.
This means that any increase in buying demand is going to move RMII up, and put more pressure on shorts to cover their position.
Those who have a lot of money, experience and nerves, will wait until the stock eventually comes down (like KTEL) to cover. But the majority will receive margin calls and will be forced to cover with great loses, if not bankruptcy (also like KTEL). That story was repeated in the past with AMZN, YHOO, EBAY, NTBK, BCST, RNWK, CMGY, etc, etc. But shorts don't want to learn and they keep themselves stick to old concept of fundamentals.
Some say we can not compare RMII with those big players and forget what they used to say about AMZN and YHOO two years ago, when they where more than 1,000% bellow this levels.
The concept of fundamentals has being proved wrong in its old fashion when we talk about Internet. So I won't refer to any fundamentals on this company. The fact that there is a high
trading volume, combined with a two days sustained price gain, such a strong momentum on ISP (take a look at PSIX, VRIO and others), plus many shorts creating rumors to push this stock down, make me feel good to stay long until after most them have received the terrifying margins calls. Then I will sell sell.
Good luck, |
