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Message: Like a game of Texas hold 'em....

Longs have been dealt a pair of pocket Jacks, and shorts have Ace King.  But shorts are the big stack, and I mean a really big stack.  By my best reckoning shorts have a margin requirement of about $7 mllion assuming short interest of around 1.6 million shares.  That's a mountain of chips, and they have plenty more left.  

Both Mr long JJ and short player AK bet big, the JJ player worrying because he's going up against the table bully.  

Then the flop comes, its 678, and AK again bets big, JJ calls....beads of sweat on his forehead.  Then the turn card, 10....AK again bets big and JJ calls fearing he could be knocked out.

Finally the river, its a deuce. 

JJ has the hand, but not if he folds....that 6,7,8,10,2 are sitting on the table....Mr long JJ knows if Mr Short player has a 9 he has a straight.  Mr Short is a bully, he's got nothing...just Ace high, but he counts Mr Long's chips and forces him to either go all in or fold. 

How many will fold because they're scared off....thinking Mr Short has a higher pocket pair or the 9 to complete the straight?   I think many would and do....convinced the large bet is a sign of confidence, not a bluff.

How does this apply to RVX?

I think that April 17th news about the proposed share offering, that was like dealing short players AK.  But the flop, turn and river cards haven't gone their way....but they still have a huge stack which means they can bully.  

 

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