When Will PURA Break Shorts And Head North Again Toward $0.35 PPS Analyst Target?

October 1, 2019 This is an update to yesterday’s PURA Short Squeeze By The Numbers post. The 15 million some odd estimated short position that went into Puration, Inc. (PURA) last week is having more success at producing a profit for the short seller than a long investor would care to see. At the same time, the short investor isn’t having that much success.

Below again is a calculation of the average price per share for the entire day, Wednesday last week, when the short position went into the PURA stock. Remember we broke it down the analysis by what the price would be if the shorted all day and what it would be if they shorted for just the second half of the day – figuring the short price was leaning toward the second half of the day average.

Entire Day - Ttl Share Vol: 34,337,704 Ttl $ Vol: $2,882,733 Avg PPS: $0.084

2nd ½ Day - Ttl Share Vol: 18,795,525 Ttl $ Vol: $1,401,258 Avg PPS: $0.075

We estimated that for the short sale to pay off, the short seller would have to acquire shares under the $0.084 to $0.075 PPS to fill the short orders with actually purchased shares. At the writing of the first short squeeze article, the PURA PPS was holding solid and not delivering an opportunity for the short sellers to cover at a price below the bottom end of the average short sale price. When the price slipped below $0.07, the short sellers were in the black, but not with a huge profit.

PURA is holding strong. The trading trends are even still demonstrating a BULLISH rating. If the short sellers were playing by the rules, they would have been forced to buy-in at this point and cover under the Trade + 3 days to cover rule. However, it appears they are not under too much pressure to buy-in under some loop hole they’ve found in staying short longer than T+ 3. So the longs, it appears, are going to have to wait at these prices – the $0.06 PPS range – and wait for the loop-hole-finding shorts to cover there 15 million some odd estimated short position. The good news, is that the trading volume is staying up at a very healthy level. Accordingly, the shorts should be able to cover in a reasonably short period of time and unlock that cap they’ve put on the PURA PPS allowing it to return to the BULL RUN it was enjoying before last Wednesday’s short attack. It could also be a good opportunity to pick up shares at these levels and enjoy the profit potential once the BULL RUN is cleared to proceed.

PURA is not alone in suffering ill-fated short seller campaigns. Do a little google searching and you will find numerous articles on short seller attempts on the cannabis market. One such article estimates that well over $1.5 billion has been shorted in approximately 20 cannabis stocks alone. Currently, the short sellers are losing money on that short bet. The cannabis sector looks strong inspite of short sellers hoping for the contrary. PURA’s recent BULL RUN is probably not over, nor is it the last one. Once this short gets covered, the decks are cleared for the BULL Run to resume.

PURA has a research analyst report recommending a speculative BUY and a $0.35 PPS. A short squeeze of this magnitude could get the PPS to $0.35 quicly and maybe even beyond $0.35.


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