(Isstories Editorial):- New York, Aug 6, 2018 (Issuewire.com) – Shares of Atlanticus Holdings Corporation (Nasdaq: ATLC) rose 14% in last minute trading action on Friday, leading traders and chat rooms to speculate that Shorts who currently control 28.94% of the companys tiny float might be sent scrambling to cover as the latest example of a bullish trend sweeping through the summer market.
Less than a week ago, shares of the company hit a 52 week high of $3.83 following a positive earnings announcement. That was enough for the Bulls to rush in and trade over 9.4 Million shares of a stock that only has 3.17 million in the float. Since then, however, things had been quieting down. Shares had been mostly consolidating and finding support during the last few sessions, but then came the last minute buying action at the end of Fridays trading session.
Short Pain Bot, a website that quantifies the pain that shorts feel daily, and acts as a starting point for experienced investors and traders looking for potential short squeezes posted comments about the sudden, last minute surge on StockTwits: The shorts probably aren’t jumping for joy today in $ATLC
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Short interest is the number of shares that have been sold short but have not yet covered or closed out.
The site estimates that the approximate amount of money shorts lost in those last few minutes is around $247.4K, but those losses could quickly add up if traders bring buying volume into the stock. As it stands, 17.7% of the Atlanticus shares are held by Institutional Ownership (Top 15 Funds) and the rest are very closely held according to a company spokesman.
Cameron Newell of Normac Newell Trading put out a note alerting his followers and others that the stock could be primed for another bull run. The trend lately has been low float stocks that run 5-15% during the day then they gap up 50-200% at market open, wrote Newell.
He also lists Nortech Systems Incorporated (Nasdaq: NSYS), Westmoreland Resource Partners (NYSE:WMLP), Oxbridge Re Holdings Limited (Nasdaq: OXBR) and Universal Security Instruments, Inc. (AMEX: UUU) as the most recent examples of the trend.
Newell, who built his reputation after turning $1,000 into $1 million, is just one of several traders and trading groups who put the stock on watch for their subscribers this weekend.
A little over a week ago, shares of Avalon Holdings Corporation (AMEX:AWX) soared from $7 to $26 after the company disclosed that MintBroker International had acquired 1,922,095 of its shares. The action trapped a significant number of short traders who scrambled to cover their positions at much higher prices than they ever anticipated on no news.
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This Press Release was originally published by IssueWire. Read the original article here.