McGrathNicol Report, page-298

""today's volume and drop in price is more to do with that than shorts covering""
jb
short covering occurs when you buy the shares that you had earlier sold short.
When you sell short your prime broker (( not a regular retail broker like Euroz but a global name like UBS )) accesses a shares borrowing facility provided to the broker by the custodian of ( usually) an institutional shareholder ( such as Australian Super) . Most CFD platforms also facilitate short-selling ...again thru the services of a Prime Broker .
In stockmarket parlance short covering implies increased turnover arising from the perceived need of those short the stock to buy back - quickly- the subject shares. This need could arise in multiple ways..such as speculation of a takeover bid, a favourable earnings update, a broker "Buy"recommendtion.
SGH has been an easy target for short sellers because ...well a takeover is not in prospect (( is it?)).
Short sellers thrive on other short sellers opening fresh positions . We saw this on neon display last year when the SGH price fell precipitously from $2.00 to sub $1.00 .
Today, however there is no available SGH stock to borrow .Those short cant short any more.
They are exposed to a concerted buyer(s) ..which could be supported by a broker "BUY" recommendation.