GAC, I’m going to add a third reason to go short to your list, 3) Add a little juice to your trade. 

In this example I’m going to go back to last June when RVX announced their best efforts financing (which many of us know is code for drop your drawers and get ready). Unbelievable that a company would do a best efforts financing with immediately tradeable shares and warrants. The investor in this example, who probably believes RVX science is the real deal, could have had say around 120,000 shares in their account but became so frustrated with RVX management that they decided to join in what was sure to be downward momentum. As a result they blew out all the shares in their account and went short with another 50,000 shares adding to the momentum and adding to the cash to buy back cheap shares. Margin requirements were then covered. The plan was not so much to shake the tree but just to take advantage of the financial opportunity RVX management has laid out before them and in so doing buy back a combination of shares and warrants to once again establish their long call on the science but at the same time keep some money in their pocket.  Could have happened.

Sadly this time around when another best efforts financing was announced the market was trained that the share price would get pounded so once again sell and buy back cheap.  Add to that the re-encumberance of the IP and you have a perfect opportunity for tree shakers to take advantage of what’s sure to be downward momentum. When I look at last weeks trading alone, of the 2.4MM shares that traded hands 1.6MM were sold by anonymous traders. For the month of May the numbers are 5.4MM and 3.3MM respectively. Smells like successful tree shaking to me.