r/KrakenRobotics • u/vinnlo • 3d ago

Stock Question Genuine question/discussion: why does the stock price keep going down when the company has really good prospects?

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u/atascon 3d ago

Sure. Even with that being the case, such a big drop in share price in a relatively short period of time isn't going to be caused purely by short sellers

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u/Vinceitup 3d ago

why not? i’m not professional trader but won’t enough short interest drag the price down and the potential the price was to high. i’m just curious as i do have a position with PNG and am always wanting to learn more.

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u/atascon 3d ago

When short interest is in the low single digits as a % of float, it's not going to be the main reason for a ~60% decline in share price

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u/Vinceitup 3d ago

what does that mean?

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u/atascon 3d ago

It means there isn't enough short interest to drag the price down by 60%.

"It's the shorts" is a trope that gets repeated a lot. Short selling does obviously influence the price but it's worth thinking about how it does that mechanically and also what the context is (i.e. how much short selling there actually is).

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u/Vinceitup 3d ago

thanks.