Someone is shorting DSTI from 14$ to 5$.
The price is now 5.37$, is that the right time to buy and will they cover soon, or will they keep shorting until the company crushes?
2006-09-28 04:52:05 · 5 answers · asked by Claudio F 1 in Business & Finance ➔ Investing
It depends on what kind of deal they have with their broker. Some brokers practice forced liquidation of short positions in stocks that drop below $5, others don't.
2006-09-28 05:08:25 · answer #1 · answered by NC 7 · 1⤊ 0⤋
It's probably close to over for this company. If you are waiting for a bounce due to short covering forget it. These guys who do this are smart and they are not going to get into a situation where the company share price rises to any significant degree due to short covering. If they can they will ride it to the ground (why wouldn't they?).
2006-09-29 09:54:57 · answer #2 · answered by woodluvto 2 · 0⤊ 0⤋
Personally, I think it is a good time to cover. After losing a third of its value, it may take a while longer for the company to lose more. Why tie up the cash for that period of time and take the risk of a rebound, buyout or a stop in trading?
2006-09-28 14:47:47 · answer #3 · answered by Ranto 7 · 0⤊ 0⤋
If I knew the answer to that question I would not be reading yours, I would be on vacation again in St. Martin!
2006-09-28 11:53:36 · answer #4 · answered by Anonymous · 0⤊ 0⤋
when you find out let me know!
2006-09-28 11:55:37 · answer #5 · answered by Ranchgirl 2 · 0⤊ 0⤋