Interested in the opinion of smarter investors here - double check my rationale:
I'm all about Space - and love Ascent's thin, lightweight, flexible panels. They are NOT in great financial shape, leading to very high short interest. There are multiple coming events that should help them significantly though, so I've held a small long position for a few weeks.
The short volume ratio has approached 50% recently... and ASTI is on the NASDAQ SHO list (https://bookmap.com/blog/navigating-regulation-sho-understanding-short-selling-rules) and short sellers must locate shares to cover their positions if the stock remains listed for 13 days.
Friday was day 12 ASTI was on the list. Monday, short sellers will be forced to close their positions at the market.
Enter Armistice Capital - who according to this 13G filing (https://www.sec.gov/Archives/edgar/data/1350102/000117266126001267/xslSCHEDULE\_13G\_X01/primary\_doc.xml) just purchased \~10%, or just over 386k shares.
There are also a recent flood of $5.50 warrants, however the price has been north of that floor for a bit and if you examine the charts, you'll notice large green candles at dips, pushing the price back up. It looks to me like Armistice (and other institutional buyers?) are keeping the price above the warrants. During all this, short sales are making up \~50% of daily trading.
Let me be clear -- -- -- I DO NOT PREDICT A SQUEEZE -- -- -- but I expect a brief, crazy rally. Either the price is going vertical for half an hour, or it'll drop through the floor... I do expect volatility, and an opportunity to unload my position at profit. Even if I don't, I expect the floor to support me enough I don't regret holding through whatever happens.
I've accumulated more (up to $25k), and plan on selling a little at $8, then a little more at $9, then a little more at $10... I'll be watching with half of it to play with in real time.
Is this a well-founded plan?
