What’s the buzz here? I haven’t bothered to follow that short position discussion, but just to remind company has 105 mil. shares outstanding of which 400k represents ~0.38% 
So its close to DTC 2.0 position if such exists (avg. trading volume ~180k shares per day).
However, official data poins that there are no positions at least above 0.5% of shares outstanding. Well, there still could be small positions like that 400k mentioned…
As per Mr. Buffett, one should focus on things that are both important and knowable. I think this is knowable but not important. (It would be different if we would start to see a trend in institutional shorts etc.)
What comes to discussions about “why didn’t stock price raise” this week etc. This is also noise since;
- This is a small-cap tech. company listed in Norway (untypical setting for large investors)
- There are only a handful of funds capable to invest in this company due to the market cap and “yet to permanently achieve break even”, etc.
- The news release about Mobile Tap sensor was a press release, unlike usually these product releases have been published as official stock exchange notes…
All of this will get fixed IF the company executes well resulting in expansion of technology and OEMS, which results in break-even and starts to gradually interest more smaller investors and finally some larger institutions (lets say above 300-500m€ m-cap). → This is exactly the mechanism where smaller private investors can have a huge advantage over institutional actors if one is correct and invests in time.
Two biggests risks IMO are:
- achieving permanent break-even
- distribution of revenues
DUe to this I would say that the risk level is somwehere around 9 at a scale from 0-10. However, if tap-sensor has similar pricing in mobile as in PC’s AND becomes available with new mobile OEMs then I would say both main risks would become mitigated at once. However this could take some months or a year or so…
)
