Daily Price Movement / General Discussion, page-18

Interesting theory they have, probably depends on the stock in question and broader market circumstances at the time as to what is possible.

I've been watching this too and here is what I've observed.

As for Chalice, ~20% drops have happened a few times in the last 12 months.

5th June - 16th June - 21% (7 Sessions)
13th July - 30th July - 20% (14 Sessions)
27st August - 4th September -18.5% (7 Sessions)
12th October - 29th October - 28% (14 Sessions)
11th December - 15th December - 20% (3 Sessions)
27th January - 1st February - 23% (4 Sessions)
3rd June - 18th June - 27% (11 Sessions)


This is how those periods corresponded to previous short sales. (Graph shown up until Friday 11th June, no doubt there will be a large spike when data is updated for this week as I've noticed reported gross short sales of between 300-700k the past 4 days)


So there does appear to be a good correlation between when the stock drops around 20% and an increase in short sales.

Interesting to note that the increase in short sales form Feb to the end of March had a negligible effect on the stock as the SP manly traded sideways until the announcement on the 25th of March "New EM Conductors and Nickel-Copper Soil Anomalies at Hartog" shot the stock up 35% over the next 13 Sessions, which was probably aided by short covering too.

Some might say they were due for a correction, which is probably true given the long spell they have had since the last, but over this 12 month period previous pull backs have provided great buying opportunities. Hopefully this trend continues, but only time will tell.