VERY INTERESTING, MAY ANSWER TO ALL THE QUESTIONS.
Of the ten most shorted stocks, only one - A2 Milk (A2M, $11.76) – substantially lost value in the month of August. Shares in the unloved Dominos Pizza (DMP, $51.26),JB Hi-Fi ($36.15) and REA Group (REA,$101) increased by 13 per cent, 12 per cent and 7.5 per cent respectively after these companies released better than expected numbers.
The long and short of it is that the strident activist campaigns do tend to hit the valuation of the target company, but not always and not forever.
With most of the stocks at least partly recovering from short-selling attacks, the rewards are there for bold investors willing to punt that the market has overreacted.
https://www.livewiremarkets.com/wire...-short-selling