Someone is keeping the lid on the stock for 1.5 years. There are 3 objectives to do this:
1. Insiders short to get more shares when company issues new stock.
2. Speculating the stock are going down and make money shorting it.
3. Keep the stock down to shake weak hands and accumulate.
So where we are now:
1. The company was supposed to be BE in Q4 , 2018 but they had that manufacturing issue.
Now with the issue resolved, they should hit BE any time now. Q2 can be a possibility considering they might have some catching up to do.
So no more dilution is a possibility.
1 and 2. Short position is down to 420,000 shares. Considering the fact the short position is at its lowest point in years, maybe almost all the remaining shorts are warrant holders who hedge their bets.
Which means the actual shorts moved on.
3. But someone is still selling.
Which can be for 2 reasons: dispose of the shares held long or to keep the stock from rising. And I always ask the same question: if you are an institution and want to sell millions of shares - why not create some buzz? Why not let the stock rise a little so the chart looked nice and stock rising and people start buying? It would be much easier to sell into a rising stock (higher prices and much higher volume) than when it is going down or nowhere and no one is buying.
So from the stock action it is obvious that the sellers' objective is not to dispose of the shares at a highest possible price. Than what is it? All I can think of is to hold the stock down to shake weak hands into selling and accumulate.
And there are not much weak hands left among the shareholders at this point.
If the company delivers and it is obvious no dilution is coming - the sellers would just disappear and the stock would start rising. Just one condition: the company has to become profitable so no more dilutions.
Based on the estimates - they can do it. If not in Q2, then in Q3 or Q4. Which is nothing comparing with all these years we've been waiting.
I am not selling. All in and will go down with the ship if the worst happens.
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