chart needs to bounce here !, page-114

The shorts are banking on a capital raising IMO. If they hold the price low enough they may come out on top. They are hoping Management will have to raise at a lower price as to offer the usual discount to sophisticated investors..that's even if a capital raising or placement is on the cards. The possibility of a farm out could still happen which could change things up.

BBY came to the same conclusion not too long ago. See below.

"With Buru Energy Limited’s (BRU) share price down 19% since mid December 2012 we believe there is a good opportunity to buy. There are currently 14.1 million shares short on Buru, and a market perception that Buru requires more short-term funding that is weighing on the share price."

The shorters played out a similar scenario with LYC. They knew they would eventually require cash and they shorted the stock heavily. It worked. Will it work for them with BRU. It might. If Cyrene-1 and Yulleroo-4 are positive then it may not. Out of all the stocks being shorted I can see why others are up on the list..but with BRU I can't see their logic.

http://www.bby.com.au/bby-insights/buru-energy-s-state-agreement-a-precursor-to-a-major-farmout-deal/'