Post by
BoldForbes on Jun 13, 2017 9:52am
Short Interest Appears To Be On The Rise
First, I am glad the share price has rallied!
When I am in an contrarian mode, I enjoy challenging the generally view points. The rise in the share price helps me "feel good" about the investment. But why has the price increased?
This leads to me to ask if anyone have good information on short interest?
For the US version of Alterra, MGMXF, I have noticed that short interest seems to be increasing during the rally in share price.
This could be due to the "uptick rule" where shorts have to sale on the "ask" and not the "bid". Meaning investors who short, need the stock to increase in price in order to sell the stock short.
https://otcshortreport.com/?index=MGMXF&action=view
It looks like the short interest went from 62,038 at 4/13/2017 up to 104,002 at 5/31/2017.
When I calculate the increase from 5/15 of 67,708 to 5/31 of 104,002 it increases 53,341.
Total volume from 5/16 to 5/31 is 137,200 per yahoo!finance. ~39% of the volume is shorts?
https://finance.yahoo.com/quote/MGMXF/history?p=MGMXF
For AXY (Canadian stock) the short interest is up too!
https://shortdata.ca/?c=alterra-power%20corp.-short-sales&sym=AXY.TO
Perhaps no one is selling their shares (99% of shareholders approved board) and the one of the ways to trigger a transaction is to borrow shares to sell?
Balance this with, usually short sellers are smarter than the average bear to take the risk?
Does anyone else have some information or insight on this?
Bold Forbes