I will point out the same thing as I did yesterday about CS.
*Abit long and involves some assumptions, use information at your own risk
As I have mentioned, they borrowed the stocks on 19th 22nd and the 23rd. From the finance perspective, in order to benefit from shorting, they need to drive the price below the point which they have purchased their stocks at.
It usually takes the following steps1) Buy in a large amount of stocks (or, earn it in the first place)
2) Borrow stocks from the broker
3) Setup the short-sell contract, at a certain price - this will likely be close (a little below) to the market price of that day
4) Dump all the shares they own (Known as pump and dump by alot of people)
5) Decrease the price along with all normal investors panic sell
6) Execute the short-selling, sell stocks above the market price
7) Buy back the number of borrowed stocks at a lower price and return it to the broker
Here, the generate profit from two pathways
A) From the increase in price of the stocks (The pump part)
B) Gain from short-contracts along with the profit realisation with the dump of the stocks (the short-sale profit)
However, the one issue I have noticed yesterday with CS's shorting strategy is they engaged in shorting activity on the 19th. The reason why this is a problem for them is because the end of day market price of IDT was 28c. This means that in order to profit from shorting, they need todrive the price below 28c and this is virtually impossible given all the buy walls and positive news incoming to the market.
Though, the borrowings on 22nd and 23rd (around 44c)I understand because as of right now, they are definitely capable of driving the price below 44c with the shares that they have; hence the reason why there is a cap at 45c (just guessing)
The point I want to make from this is, CS wants to leave the IDT asap as they are already losing from the 2nd wave of price spike on the 19th. If they are lucky enough anddid not enter a short position on the 19th, they have just keep that day's worth of borrowing and use the other two day's worth for shorting, which would explain the downwards movement in the past two days. They will also be concered about the announcement that may drop sooner or later, are already engaging in active sell-off activityas they did this morning to drive it down below 39c
Simply put, CS is not to be concerned with, remember they are not the only firm inon this stock
(20min delay)