FrederikSchack
Regular
I think what really matters from here is that it's no longer a good short. I understand when it went above 1.5 AUD and there was a big influx of new investors (especially from Germany), with an upcoming annual report that would be deep red. It was obvious that a lot of inexperienced new investors would jump ship an push down the price. I didn't short, but I sold all my stocks at 1.59 and planned to start buying back at 0.7, which I did and I even loaded more on top of it.These are very attractive prices to buy IMO.
The fact is many will not buy here phycologicly people are afraid it will go lower. going lower. But when news comes and we are trading at 1.00s then there will be truck load of buyers.
You need to look to the future and learn from the past it's not comming back.
This is what the short would win.
Say you shorted 100k shares at 1.80$ you now have mad 130000$ nice we know for a fact that that is true.
That is only a few shorts too way less.
Today the shorter will say short 400k shares worth about 200000$ to make the same return the price needs to go 0.125 cents think about that would that happen?
How many do they need to cover 4 times more.
In short they have very little fire to play with now very little. The volume of actual real shares on the market is very very low the trading volume is a strong indication of that.
So for you to go long with 50 k you have a better chance of earning 130k profit with the companies current direction then the shorter does and your only risking 1/3 the amount of dollars the shorter has to.
Logically long is the favour based on the current value with news flow and company activity. The shorter is just playing up the fear still stopping potential buyers buy playing the short and arguing the same same issue revenue which is true but we also know revenue shoildbincreas in the next 24 months not decrease what it increases we dont know.
I did some research on semiconductor stocks there are companies that are valued between 10 a the way to 986 p/e.
This is a hot hot market at the moment for the next decade or 2 really.
For the record I have never shorted this stock or would plan to and you don't lose if you don't sell is true. All this is my opinion.
All I know it's getting harder to follow the news of what's happening with BRN that to me means lots is going on.
Revenue is inevitable in my opinion.
Also for a fact US spends 1 trillion on defence annually maybe even more that we don't know if and al l the related work around that. They seam to be really studying and working on the SNN side of stuff. Weather we like it or not this space will provide $$$ To BRN. IMO
And as you said, people fear and then they get greedy. This I think is especially true for a pre profit company where you can't compare the P/E, P/B, EBIDTA e.t.c. When this company turns a profit and becomes visible in everybody's stock screeners, it will change everything and Peter van der Made a hero