GREY:SXRZF - Post by User
Comment by
howdy1on Dec 07, 2010 12:47pm
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Post# 17812827
RE: RE: another way of looking at fair value..
RE: RE: another way of looking at fair value..UUU has gone up in an orderly way taking its fundamentals into account. And it is just getting started. Its share price has (almost) consistently been in lock step with its peers and the sector as a whole. The dividend is not factored into the share price right now and all of its key ratios show that it has lots of room to run.
I think that the huge short position is nothing more than (some) big guys locking in profits at the levels they shorted at and putting off paying taxes until it is convenient for them--next year. They have shorted against their own long postions. Check our "shorting the box" as a google search and you will see that this practice is not legal in the U.S. but may well be legal in Canada.
If this is true, the short position is nothing to be worried about. It will create a floor right around here with weak hands being shaken out.