Ann: Business Update, page-231

I posted a while ago that I sold out because the chart looked like it was forming a topping pattern. I had no other good reason for selling. I thought and still do think that this is a great long term stock. However I got in late (original purchase was just above $1.10) and didn't want to risk good short term gains turning into a loss with the way the chart was looking. The support finally broke and the stock plummeted. I'm a bit surprised at the pace of the fall but it has reached a price where I would have liked to get back in. It appears to at least temporarily have found strong support around here over yesterday and this morning so I have bought back in today at $1.01. I haven't over-committed, mainly due to funds locked up elsewhere but also because it's certainly possible to see a bit more downside yet but I had to get some exposure here. The chart is certainly nowhere near its topping formation so share price risk has diminished substantially. Trade war risk has also reduced a little as well and I can't see anything else having changed negatively. I don't see any problem with short term cash receipts dropping. That's just a timing thing at least partly due to early payments boosting last quarter's cash receipts. The main risk that I was concerned about after I first bought was pricing risk and that is now much less of an issue for me.
If this is heavily shorted, I'm sure the shorter's will be letting us know how this won't go back up until the gap gets filled. While they are telling us that, they will be soaking up as much as they can above that gap to cover their shorts. If they were shorting from around $1.50-$1.60 and on the way down again, then they will be on big profits here so I'm guessing they will be happy to start covering now - in fact I think they were covering aggressively yesterday at under $1; and realistically they can't cover all their stock at an exact bottom so will be covering on the way down to the low and on the way back up. I'm not counting on the gap being filled but if it does I'll have to upset my wife and transfer cash into my trading account and would love to buy some more near 90c. I'm not worried if this parcel ends up with a temporary 10% paper loss. It's now worth that risk to be back in for when it does rally again. At this price I'm back to a buy sentiment.