It looks to me, from the chart behavior, that what has happened is that SFMI was being shorted and the lawsuit has stopped that dead in its tracks. Why else would the last few days act like they have acted? A short-artist who has been caught flat-footed by litigation they had not expected might be a perfect explanation of chart behaviors that, otherwise, lacked explanation.

I think the solid green performances the last few weeks speak volumes about the genuineness of the allegation that SFMI has been being shorted. Reading thru the 8K, it looks like they raised money in a private deal and the folks with whom they were dealing were shorting them bigtime. So the suit gets aired and VOILA!!! Instant stop to the illegal shorting activity, and hence, instant cessation of the fake decline that the short artists have been forcing.

After all, with the actual filing of a lawsuit about the shorting that they have been doing, how could the short artists dare to go on shortring? And minus the contrived downward pressure the short artists have been applying, there is no reason for the prior behavior, which was entirely forced by the illegal shorting, to continue.

Suit gets filed.... short artists get caught with their pants down... Thier bundle of short positions is now a boat anchor and they can, in no way, continue to send out smoke signals and short like they have been doing. Hence, the decline reverses and a series of green days appear out of nowhere. Without the short meister working his crookedness, there is no natural downward pressure to fill in for what was being applied by the short meister. So, green days abound.

If my theory, just enunciated above, is what has actually transpired, we will soon have a lot of evidence supporting the contention that there is nothing natural about the way this stock has had its price crater.

IMHO, even if the short artists wanted to continue to short, they now have no choice but to pull in their horns and hide from view. Otherwise, they would be operating fully exposed, wide open.

The stock price stopped falling tin the last couple of weeks and now its pretty clear why this has been happening. Nowhere to hide means that there may just be a short squeeze coming.

Frankly, if SFMI has been planning this litigation, it would not surprise me in the least bit if they have a warchest in place with which to attack the short-miesters. The short meisters could be forced to cover. The counter-intuitive thing to next happen would be a short squeeze that forces them to cover. I mean, they may have now forced the shorting to cease (and no player has stepped in to take the place in the batters box, meaning that the weighting of the bid/ask action is now skewed to the upside for once, LOL), but the logical thing to do is to force them to cover.

If they can be forced to cover, they will face calls that they can not hide from.

You force them to cover and you have all the evidence you could ever ask for to demonstrate that they have been committing the crime of short selling, which violates the terms of the contract they are claiming they have a legitimacy concerning.

So, force them to cover, I say. Force the issue and they hang themselves, wide open and with nowhere to hide. Instant evidence galore!!

This could get interesting, if you ask me. I'd always thought it was a natural fact that a stock telegraphs its next move, and if this is the case, then what has been a series of unexplained green days may have just telegraphed the next short-term wave in the stock price.

Quote: I say: watch for a forced cover to generate a lot of evidence substantiating the claims made by SFMI that there is a short that has been illegally underming the stock price. If they succeed in forcing the short artist to cover, this could be a very interesting few days.

Watch the volumes at the bid and the ask, people.

If SFMI has a warchest, the shorts will get squeezed. If they do not, panic may set in. This may really be a complex set of upcoming days!

Good luck to all the longs. Sure would be nice to hand the short-players their head on a platter, LOL.

Imperial Whazoo