Karora Resources Inc KRRGF

Short interest

[MaterialsMan]

I'll admit from the get go that I dont know a lot about shorting stock other than the fact that some investors take a gamble that the stock price is going to go down. Personally I think it should be outlawed.
Regardless, I glance at the OTC Markets site occasionaly to check the spreads between the bid and ask on lightly traded stocks.
By scrolling down a little further, I noticed that the short interest numbers are published as well.
According to the table, the short interest in WGXRF has risen some 5 to 10 thousand % since the merger announcement to over 3 million shares.
In the meantime, the stock price is up on the Australian exchange to almost its high.
It would seem that the investors in WGXRF might be getting a little nervous. Maybe that's why the ask price is so high since holders of WGXRF may realize the situation.
I don't reallly know for sure if this situation may have some implications, but if someone out there that is familiar with how this shorting works, I would love to be clued in.
The short position in KRRGF has remained pretty constant for quite soom time at around 2 million shares.

[MaterialsMan]

Am I correct in assuming that as the share prices of Karora and Westgold continue to climb, as is the case right now, then those with short postions (5 million shares are now shorted), will be caught in what's called a short squeeze resulting in more upward pressure on the prices of these stocks. WGX.AX is having a good move tonight, and the stock price seems to be moving steadily upward

[MVargas]

KRR's last reported short position on the TSX was almost 10 million shares and so yes, with little time to replace those "borrowed" shares, a short squeeze is a distinct possibility. A profitable trade for KRR shareholders would be to short WGX shares and replace them with KRR shares converted to WGX shares post-merger, so a large WGX short position is not a concern. With WGX

[MaterialsMan]

MVargas, As I mentioned previously, I don't quite know or understand all the ins and outs of shorting stock. When you say shorting of WGX is not of much concern, I don't know whether you mean WGX.AX or WGXRF. It would seem that a short position in Australia in Westgold could be a significant problem for those that have short positions there. Last night WGX.AX was up 5% on double regular