RE: If Tung29 Oct 2015 21:40
northernsoul
"was doing very well and profits were flowing rather than just in the early stage business model
The shorters would be nowhere to be seen.
That is reality."
I agree completely. The shorters are the sharpest tacks in the business. They look for inflated share prices, move in with speed, strength and skill to force those share prices down and stripping the weakest holders of their holdings. They are unrelenting. If they pause in their assault, it is to suck in new buyers at lower levels and grind them into the mix.
They leave when they see diminishing returns and better prospects elsewhere. Sometimes they stay too long and get stung, like Ennismore and QPP. Ennismore could have closed their shorts at 25p, but got greedy and ended buying back at 3-5 times that price. They have started to close, but sometimes they just pretend and come back with a bang.
Back to your point. The first whiff of ebitda positive will end this. Everyone knows this. The shorters aim is to make as much profit, BEFORE that point is realised. I drip-feed now, not because I know when shorting will end, but simply because I believe it WILL end. With that mindset, a penny or two up or down is not material. ANY profit will see a marked rise in the share price. I just have to wait.