For anyone who thinks its RFE, there are plenty worse in the...

For anyone who thinks its RFE, there are plenty worse in the ASX300. At least RFE has gone sideways in the last 9 months. MAD for example has gone from $1.40 to $0.55 in that same time. I'd rather be with RFE in that scenario.

Just been looking at the short sales data. Below is an updated version of a chart that I posted last month showing the open short positions vs SP. Last month it looked like the total level of open short positions was starting to decrease, however around the end of the month, the level took another jump to a new level around 3.2-3.5M (still just under 1% of stock). Somehow that was achieved while the SP was above $0.75, i.e. without pushing the price down. I still cant figure out quite whats going on, primarily because the price hasnt been pushed down in the process (although its certainly been capped). I can see two scenarios (these are just my theories):

1. The price will be pushed down at some point to try to clean out remaining weak holders at cheap prices, before we see a controlled rise.

2. If fundamentals push the price up (through demand) before the above happens, we could see a massive spike because the short positions will be forced to cover.

Will stay tuned with interest to see how it pans out.

Cheers, Sharks.