Day to day discussions on S/P, page-14149

I think the ratio of volume is the wrong figure to be looking at (but still important). The % of capital shorted relates the shorting to the capital of the company (PLS) whereas shorts as a percent of volume relates it to a variable. The large turnover of $41 million on 9 July was due to an announcement, a good announcement from a shareholder viewpoint. The percentage of volume was low as a ration but still high related to the total capital of the company. The shorters would have made an attempt to hold the SP back so as to avoid having to cover too high and they did that nicely by late in the day. It must have come very close to a short squeeze.

The big thing to notice is that since 9 July the % of capital has been much lower than before the announcement and that is likely just the shorters holding the price in check to allow orderly covering rather than trying to beat it down as they often do. What happens over the next few weeks will depend on things like the quarterly (due about end of next week) and in August, the report on the full half-year. If these do not show a strong position the shorters will attack again (IMO) unless we get a good announcement on the partnership deal. However, if things go well the shorters may be in trouble (hopefully).