Share price has been staying around 1.10 for 3 weeks, given such a low price, anybody would be crazy to continue to enter into short position. the possibility of rebounce surpasses fall.
Also most of options expires within 4 - 5 months, there are large volume of options opened on August(at a price of $1.70-$2.00) is expected to expire this months and next, if share price remain $1.10 until expiration date, most of short sellers would have made the value, they would be crazy if they continue to short at a price of $1.10. What they expect would hopefully the share price would not rebounce before the expiration date.
There are 3 phases in my opinion:
Phase 1 - from Jan 2014 to June 2014, because of DFA news, Share Price falls, short position increase steadily.
Phase 2 - from July 2014 to Sep 2014, large funds start to buy for dividends distributed on September, share price goes up, but short position continue to grow as people expect a plunge after dividend date when large buyers harvest the dividends and left.
Phase 3 - from Sep 2014 till now, share price goes down and short sellers slash the share price to profit, until their short position expires. this is the time when all the negative news(like how much salary the directors are paid, FDA news again and again, pipeline projects) comes out.
If share price stays at 1.10 for two more weeks, I would expect a plunge on short percentage.
ACR Price at posting:
$1.06 Sentiment: Buy Disclosure: Held
