Back to $3.50 by July?, page-10

Beginning mid-December 2015 ======================================>> click "Y"
... a coordinated game between longs and shorts began in earnest. Note the short position bulid from mid-December:

http://shortman.com.au/stock?q=pry

Every individual here is out to make money, longs and shorts.

PURE SPECULATION follows.

1. This part of the healthcare sector suffers from government intervention/policy on fees. OK, but why a tight trading range rather than a further drop? Dead money to shorters, AND don't forget any divvy they have to pay on their borrowed shares. Also, an always present upside risk.

2. PRY will benefit from potential expansion into China propelled by the FTA. OK, the sp is UP about ~10% since 22.12.15. This is on top of massive daily short sells (scroll down on the above linked page).
Where the sp should go down by shorting, it isn't. PRY remains tightly range bound.

3. PRY's market cap has more than halved from its 52 week high. OK, but the fundamentals of a forecasted  poor 2016 were mostly known, government forays came soon after, and debt. So why aren't the shorts continuing to rule? Hard numbers, eg. EPS is $0.52, DPS $0.20, POR of only 38%, book $4.74 giving a P/B of  o.52! Nevertheless, as good management does, it's implemented the moves outlined below, which will start to be reflected in this Q$:

http://hotcopper.com.au/threads/ann-trading-update.2643581/?post_id=16438873

4. Whispers of takeovers are making the rounds. Hm, two parties are mentioned: a) the Chinese, always. the Chinese, that's FTA  inspired, and; private equity, that's sp/cap inspired. With this type of business, ie. relatively stable revenue projections, extensive in-place infrastructure, etc. I'll throw in two other suitors; pension funds,and other healthcare providers who see the numbers and current weakness as a predatory t/o opportunity.

In trying to rationalize the shorts (huge, and growing), fiscal 2016 (weak, but baked in) I concluded the risk is to the upside, with ~15% downside risk.

So, I'm in.

OV