Like always you go straight to the point.
I gave up many months ago to "forecast" Kar price based in permanent mistakes. Like I wrote at that stage exist two separate entities. The share and the company. The share doesn't cares what is going on in the business, and doesn't matter what happen with the business they can't promote and lift price or expectations.
But for sure exist clear indications that a success in the current drill and if we achieve 2C or maybe 3C how can the short position avoid the proportional buyers ?
As soon a "good" result comes sounds to me the short position achieved the exhaustion phase. They know that bring sub 2 they more and more open the door to a hostile take over that can in one second after 4:10 push the price from 2 to 4 or 5. They are not crazy !!
I believe we achieved the botton, in spite too early to state that and stll the volume of shorts require attention.
My sincere believe is (or my hope ?) as soon the share break the cycle of all negative views and the company support that "new cycle" with good results I believe the share will loose completely the capability to "stop" the grow.
To support my view its fair remember that stage the share have basically NO RETAIL.. The funds obviously will be not interest to sell as soon achieve 4 or 5. High chances the opposite. They will come buying more understanding no sellers.
That process can bring the share to 7.50 in less than 3 months. Sounds too much ?
No...
2,50 is what sounds too less !!
Cato
IFL Price at posting:
$8.96 Sentiment: None Disclosure: Unspecified
KAR Price at posting:
$2.94 Sentiment: Hold Disclosure: Held
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