Disclaimer: None of this is investment advice. The logic here may be bad and should not be relied upon. My assumptions may be bad and should not be relied upon. This post reflects my opinion. I may hold positions in securities I write about, and I believe in what I write.
The amount of shorting and the money behind it is, to me, unfathomable.
To agree to a fee of 210.6% to borrow shares to sell? Is it commitment? Lunacy? Do they really expect EVFM to go to $0?
As I wrote about yesterday, going to $0 may just take NASDAQ delisting Evofem’s stock, which is a strong indication of why there’d be such a push to depress the price. But the deficiency notice NASDAQ had sent to Evofem just requires them to close at or above $1 for 10 consecutive days. And then I think the shorts are broken.
Yesterday the approach was different from that of the prior two days. On Monday, it was get it over a buck, and then the shorts came in and tried to press it down.
On Tuesday, it was get it over a buck, and then the shorts came in and tried to press it down.
On Wednesday, it was the shorts pressing it down, and at the end those on our side (the good guys?) tried to push it up over a buck. And it didn’t work.
In my opinion, it’s craaaazy risky for the shorts to borrow at this rate with so much of a push against them.
We’ll see if the move today is to get it up over $1 and sustain it earlier.
I haven’t been in this game long enough to understand how this isn’t illegal market manipulation. I mean I think it’s not illegal short-and-distort because they’re not saying anything bad about Evofem, which, by the way, now has even stronger protections of Phexxi through a new patent.
So I still think it’s the fight for $1 close to get rid of these short sellers and we’ve got all 10 consecutive days to go to make the squeeze inevitable.
Meanwhile I grabbed more at $0.82 because I think it’s silly for it to be priced so low!