Concordia Healthcare Corp. T.CXR.R

Shorting has something to do with it

[Marcel7]

I will gladly thank the shorts when they push it up and are covering, but will assign some of the blame for the current drop in price to them as well.

The truth is, the kind on increase in short position we have seen does have an impact on the share price, especially on a relatively lightly traded stock.

Now fdfd is saying is don't blame the shorts by saying they may be onto something.

First of all, one can say that shorting has had an impact on the recent price drop and be correct regardless of the short's motivation.

As to the short's motivation. To suggest that it is because they have inside information or have estimated that quarterly results are going to be a little light is a stretch. If they had a case for the earnings to be lower than expected we should be expecting a hit piece anytime to help them drive it lower, especially after they have increased their position. Typically the hit piece would come out before the larger short position is revealed (yesterday after market close).

Their motivation is obviously that they think the stock price will decrease. But the why behind that could be any number of things. They may be banking on the market going lower, and CXR with a high beta going down more. They may be betting against biotech in general. They may be trying to manipulate the price lower. It may be Clinton shorting it in anticipation of another tweet. They may feel that CXR is a riskier bet (due to debt ratios), and with recent market volatility investors will flee assets they view as too risky. To speculate on the motivation is difficult, especially in the absense of any credible short case.

The one thing I do know, is that the shorts will eventually have to cover, and driving the stock price down should not impede the management of the business. The shorts had to cover in October, they will have to cover again. As long term investor my timeline is probably longer than the shorts by at least year, so I am comfortable waiting them out, and even buying when they present me with an opportunity.

GLTA

Marcel

[banksters]

banksters.... banksters and hedge fudgers have this baby by the throat..... don't tell da shorts I told ya... half of the are coverin, the other half are shortin.... heatlh took the 5th.....   politicians don't like tat....

[fdfd12]

No Marcel. When I said don't blame the short, it is not because I mean they are onto something. What I meant is that every time this stock goes down, everyone on the board says it is the shorts. What I meant is, it is not the shorts bringing it down. It is people who have owned the stock selling it.

[Marcel7]

fdfd, I really appreciate your views and opinions on this board. You provide an important critical voice of reason with some of the long comments or assertions. I agree with you here, and may have misunderstood your point. A lot of the current price drop is market and sector related. I do not think it is due to shorts for the most part. However, we were specifically speaking to the data on

[fdfd12]

I now understand Marcel. Good job and thanks. How much of a short increase was there? This trades about 400K per day which makes it for 2 wekkds, 4,000,000. Since shorts are reported every 2 weeks, how much of 4M was there a short increase? If the increase is 50K, it may not mean that much. But an increase in shorts of 500,000 would make sense for the price drop.

[Marcel7]

The increase was large. 30% increase in 2 weeks, 534,225 shares. Settlement Date Short Interest Avg Daily Share Volume Days to Cover 1/29/2016 2309264 273788 8.434497 1/15/2016 1775039 317146 5.596914

[select1011]

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