September 30, 2019
Puration (PURA) has enjoyed tremendous trading volume the last two weeks and on Tuesday, last week, September 24th, 2019 it looks like a short seller decided to take a run at profiting from the volume and increased PPS.
From a download of the time and sales (you can down load it yourself from OTC Markets*) and tabulating the total shares and prices traded, and then calculating the corresponding average price per share, you can get an idea of the average short price. Below is a calculation of the average price per share for the entire day and for just the second half of the day.
Entire Day -
Ttl Share Vol: Ttl $ Vol: Avg PPS:
34,337,704 $2,882,733 $0.084
2nd ½ Day -
Ttl Share Vol: Ttl $ Vol: Avg PPS:
18,795,525 $1,401,258 $0.075
From the price and volume of trades, it appears the short selling started around lunchtime. A guessestimate of the short volume would be that 10 million to 15 million of shares in the second half of the day were sold short – probably closer to 15 million and here’s why:
For the short sale to pay off, the short seller now has to acquire shares under the $0.084 to $0.075 PPS (see table below) to fill the short orders with actually purchased shares. However, the PURA PPS is holding pretty solid. Shareholders aren’t panicking. The PURA PPS is holding at the average short price. Accordingly, most of the sales in the second half of the day were probably short sales since real shareholders seem since Tuesday to be holding tight and staying long. The real shareholders were likely holding tight and staying long on Tuesday also. Hence the reasoning that most of the 18 million shares traded in the second half of the day were likely sold short.
The T + 3 Short Squeeze Opportunity
Short sales are required by regulation to be filled with actual shares with in 3 days. This short seller is at the three-day limit now and hasn’t gotten the price to drop low enough to make a profit. In fact, the PPS has tried to run up and the short seller has probably had to sell some more short shares to try and hold the price back. Stock Tech Analysis (StockTA.com/PURA) indicates PURA is still rated BULLISH across the board – long, medium, and short term. See the healthy chart above and how after the short went in and the PPS came down, it came down and smaller and smaller volume everyday because real shareholders are holding. Today, Monday, September 30, 2019, the gig is up for the short seller. They are on borrowed time and will have to buy-in rapidly to cover there 15 million some odd short position before a regulator watchdog catches then with their short-pants down.
In Thanks For Shareholder Support
15 million shares of buying is bound to be good for PURA’s overall PPS. The shareholders that have been holding tight and staying long could have an opportunity to profit from the ill-intended efforts of short sellers to bet against the company.
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.
*Go To https://www.otcmarkets.com/stock/PURA/overview And click “5 Day” on the chart and then click “Data” on the chart
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