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How about this for some strange activity. About 2 weeks ago I buy 500 shares of APPN, and then a few days later my broker (Schwab) emails me asking if I want to lend my shares back to them for 24% per year, accrued daily and paid monthly. I'm like what's the catch? Now I know this could be someone shorting the stock, or someone with warrants who wants to lock in the recently high prices. As I am executing the stock loan, the interest rate was recast to 49%!! So now I go back and buy a bunch more shares spread over a few accounts so that I can get the same deal. Sure enough, but the new interest rate rose again to 68%, and my original shares also received this rate. All the time last week, the market makers were walking it down, gapping down in the morning and the closing it at the low. Volume is also drying up. Oh, and after all that happened last week, I get an email Friday night changing the rate to 85%!!! I kid you not! But this tells me that someone is desperate to get this price down and I don't think it is someone with a straight short play here. I think someone wants to drive the price down so that they can acquire the amount of shares that they truly want to buy. Remember when the stock price hiked up to $43 earlier this month? I bet that was the buyer trying to flat out buy volume and it spiked the price. So this person's strategy is to short the heck out of it in hopes of being able to acquire more shares at lower prices. We'll see. I may just put in a few limit buy orders for some more shares in the upper 20s in case the drop goes below that. Any thoughts related to the craziness I describe above would be appreciated. How to play this? Watch how the stock price slowly sinks, and then jumps on any kind of green volume. Nobody wants to catch a falling knife unless you're getting paid 85% while it happens. 60MM shares authorized, 7MM shares owned by institutions, 28MM shares owned by the founder, and as of 1/24/18 the short interest rose from 1.7MM to 2.5MM shares in 2 weeks!!
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