Concentrated Short Getting Desperate!
I preciously discussed extremely narrow floats of SWC, and a possible TRAPPED big short player here. Latest data show that institutions loaded up even more long positions. And this trapped big short is becoming desperate in trying to unwind its short positions BEFORE the good earnings SWC will announce in a few days.
How desperate the concentrated short has become? SWC dropped 25% in just last four days, and that's on top of a 25% correction from recent high of $16.47, a correct which was triggered by an insignificant one cent quarterly loss in the first place. There is absolutely nothing that justifies such rapid and furious drop of a stock that has very bullish fundamentals. The only reason is this big short is hammering SWC by heavy shorting, hoping to trigger a panic sell from the long side, so that this big short can unwind its huge short position, which is as high as 6M shares.
But institutions are loading. Based on observation of the NASDAQ statistics. Total institution holdership see dramatic increase in recent days. They increase a net 1.4M long positions in just the past 16 days:
July 10,07: 36,354,783 shares
July 15,07: 37,144,283 shares
July 21,07: 37,429,043 shares
July 26,07: 37,736,888 shares
So who is buying and who is selling? The big institutions are massively buying cheap shares, and while some retail longs panic sold, more retail longs get an excellent entry point and they jumped in in recent days. So really the only big seller is the big concentrated short. Not only they could not unwind their positions, the accumulated even more short positions.
This short position MUST be unwind at some point. And it must be unwind before the big news of the earnings report. The big short must be pretty close to a panic, judging from how desperate they have become in hammering down SWC today.
Folks! Do your own DD. But I presented all the facts I know here. This is a rare opportunity to make some big money in a short period of time. Jump both feet on board tomorrow. But make sure you finish doing your own DD today!!!
As of this writting SWC closed the day at $9.29. I believe this is pretty much the bottom here. Big institutions, while they enjoy loading cheap shares here, would not allow it to drop too much and cause a panic within the long camp. Big boys have a short squeeze to do, remember! When big boys accumulate enough long positions, and the trapped short digged itself deep enough in a pile of short positions, big boys will launch the short squeeze. Besides many retail longs begin to jump in. Big boys do not want too many retail longs to spoil the fun, because retail traders tend to sell for profits too soon, diminish the effect of short squeeze.
So load it up before some one else does!
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