RE: Mexican standoff10 Dec 2019 19:34
The Good:
The honest LTH PIs who are intelligent enough to read RNSs and company accounts and form an opinion about the company’s value. Most LTH PIs would value EUA at well over 2.5p, 4p, or even 12p and by now are loaded up to their chuckies on EUA shares. Their sticky hands explain the absolute lack of sells over the last few days.
The problem PIs have is that their pockets are not very deep in the grand scheme of things. EUA is a tiny company that is well below most people’s radars, even after all the recent publicity, so current LTH PIs are not able to drive the price up at a faster rate than MMs are able to short.
The Ugly:
Most real day traders (the pros who actually make money on it) would have moved on to more volatile, high-volume shares by now. The wannabe day traders (the sheep, the herd, the stupid money) would have been burned during the pump & dump from 3 to 4p a couple weeks ago and don’t want anything to do with EUA. The irony is that collectively pumping cash into EUA shares might be the best play these gamblers can do, as MMs will have to buy back the same shares at higher prices once the fuses blow on their current shorts. But the sheep will only go where the sheepdogs let them go, even if it takes them away from the luscious green grass that EUA has to offer. The ugly will most likely buy into EUA after the next spike, losing more money while being shorted into. That’s unfortunate – we could really use their support.
The good news:
The time is on our side. Every day brings us closer to yet another good news RNS and brings more short-related costs to MMs (borrowing stock is not free). Currently, the SP seems to move mainly because of fluctuations in bid, as MMs desperately try to scare more people into selling. Hold on to your shares, focus on the facts and enjoy the ride!