On the 18th of last month, we reviewed the heavy short position in Hybrid Technologies stock when it was trading for approximately $3.50. Since then the stock has continued its bullish uptrend, reaching a high of $4.65 earlier this week; a 32.9% increase. Those who have shorted have appeared to recognize the value and potential of this stock as reported numbers have shown a reduction in shorted shares.
As explained earlier, shorting is the opposite of buying. Instead of buying and then selling at a later date, a trader sells shares he doesn’t have and then later buys them back from the broker. This puts the trader in a risky situation, since a positive announcement from the company would attract great buying pressure and spike the price per share, causing those who are short to lose on the trade.
The company was recently given a $5.30 target price by SISM Research as well as a ‘Speculative Buy’ Rating. SISM Research analyst Ernest C. Schlotter stated, “Electric powered vehicles will quickly gain meaningful share in the worldwide light vehicle market due to rising energy costs and increased emissions regulations. Hybrid Technologies is an emerging leader in the development and marketing of lithium-powered products worldwide and could benefit from this trend.”
Continuing he said, “Currently, the market is limited because of high prices, but this technology has the potential to become mainstream as production volume increases. Subsequently, vehicle prices should decline.”
Let us hear your thoughts: Hybrid Technologies, Inc. Message Board