Think about it for a second. There were likely ARSC shares shorted at $.0001 and whoever did that is already down 100%. Then you have shares shorted at $.0002, those shorters will be down 50-100% come Monday, which means those who shorted at $.0001 will be down 300-400%. I hope you are getting the picture. Today's price action is akin to someone pushing forward that first domino. It set off a chain of events that will lead ARSC trading much higher than current levels.
The problem with shorting a stock is: what if it keeps going up and never comes back down? As recently as Monday ARSC appeared to be the easiest short, a stock that had no life and was destined to be bidless. How quickly things can change. The shorts, who have been fearless thus far, are about to figure out that nothing in this market is easy. With ARSC on the cusp of a big breakout, the formerly reckless shorting of ARSC will turn into reckless covering as those who shorted this stock attempt to cover their shares for the cheapest price possible. Come Monday that will be $.0003 and $.0004. If they wait longer they could be looking at even higher prices.
As I've said before ARSC is not your run of the mill pink sheet stock. Not only is it fully reporting with the SEC, but it's future prospects are bright. They boast a $21 million order backlog. My point is ARSC may never come back down to $.0001. This could be the start of a sustainable uptrend, one which the shorts inevitable have to cover their positions at increasing prices. Essentially we could be looking at a very real short squeeze.
According to buyins.net over 6 billion shares have been shorted. That's almost 75% of the outstanding shares and could lead to a short squeeze to remember.
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11 comments:
It's not that I doubt your research or your thesis however when it comes to covering shorts & the squeeze play I've seen it claimed a hundred times before with no results. Go to nearly any penny stock chat board and invariably there will be numerous claims a squeeze is imminent. Yet somehow it never seems to materialize. RNWF is a case in point. Supposedly on RegSho for a month with daily claims they'll have to cover, but they never do. I don't know, it's like crying wolf for me. Maybe ARSC will enjoy a nice run, but I'm leery of the squeeze claim. Good luck to those invested in it.
Hey,Can you stop already with the shorts nonsense.These bloated pigs are only good for leaving multiple bagholders and tradea= for a 1 uptick move~To many pumpers on Ihub swear by you lol.I have made good money on your plays but this shorts covering is all bogus.Good luck with ARSC, and TCLIF bagholders mania lol.Thanks for the great plays though Bob
The data from buyins.net is staggering.
BUYINS.NET Updates American Security Resources SqueezeTrigger Report
NEWPORT BEACH, Calif., May 3, 2010 (GlobeNewswire via COMTEX) --
-- Approximately 6.06 Billion Shares Have Been Shorted Since August 2009
-- Next Squeeze Expected Above $0.0003
BUYINS.NET, http://www.buyins.net, a leading provider of Regulation SHO compliance monitoring, short sale trading statistics and market integrity surveillance, has updated coverage on American Security Resources (Pink Sheets:ARSC) after releasing the latest short sale data through April 30, 2010. The total aggregate number of shares shorted since August 2009 is approximately 6.06 billion shares. The SqueezeTrigger price for all (Pink Sheets:ARSC) shares shorted is $0.0005. The next short squeeze is expected above $0.0003, where approximately 1.73 billion shares have been shorted between $0.0002 and $0.0003.
Click for original Report: http://www.buyins.com/reports/arsc4-9-10.pdf
Click for updated SqueezeTrigger: http://www.buyins.com/images/arscstr4-30-10.jpg
Click for updated view Friction Factor: http://www.buyins.com/images/arscff4-30-10.jpg
Ok,Bob you know for a fact it doesn't materialize.Those shorts are actually T-3 shares.Show the disclaimer on the bottom bud.This was paid for,that's a sign that its a pump.I'm not bashing Mr.Wilcox,just stating the facts.You have lots of newbie dreamers stuck in Tclif,and now I want to avoid it from happening to them with Arsc.Yes,you can trade it,but once the pump is done,watchout.No bid and newbies bagholders are made.Keep your creditibilty and followers happy by looking for solid plays,vcty,goig,etc.Keep up the great work,but check out my advice.
Mr. Wilson
These stocks are volatile and risky penny stocks, just as they have fallen dramatically they can rise quickly providing the opportunity to secure large profits on the way back up. That is what I provide for my readers. The chance to catch a few hundred or even a few thousand percent gains on the way up. The list of these stocks i have provided on my blog is becoming longer by the month. These stocks are not to be confused with ones you should have in your retirement account. But at the same time there is a lot of money to be made and that is the reason people buy these stocks. Most of the press releases you see hitting the wires in the morning have little if no substance to them, yet there usually is a positive reaction to them. It is investor perception, if investors are willing to buy a stock and accumulate it, it will inevitable rise, regardless of outside factors.
Everything your saying is true,volume speaks for itself.But, shorting in sub penny land is rare.We all know covering is not going to happen.People claiming that they have to cover 6billion shares are just pumping the stock which is never good.Done with this topic,now bring on more 10 bagger plays,Thanks
I agree. Your picks have a phenomenal way of taking off and making nice gains. Although when to sell can be a gut wrenching experience! lol. However the short covering squeeze rarely materializes in my experience (for pennies at least). Keep up the good work. I appreciate your efforts.
IN response to: "There were likely ARSC shares shorted at $.0001"
Why would someone short at .0001? what potential gain do they have?
those shorting at .0001 have a still potentially unlimited gain, when a reverse split allows them further downside.
this is particularly why so many short positions are added as a share price approaches the 'zero bid' land of .0001.
So many of these Pink companies R/S at that time, and so shorting there is often a very profitable venture
HI Bob, what is your target on ARSC? Thank you very much.
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