Verde Short SellersHello All,
Between June 15 and June 30th this year only 2000 shares were purchased to cover existing short positions, leaving the overall short interest at 109,700 at June 30, down from 111,700 at June 15. This would have little upward impact on the share price during this time, with shares trading hands between 47 cents and 61 cents.
Given the recent positive trends in production and sales, I am not sure that those who shorted the Company would expect to see the share price going down to better short covering levels. In fact, I would suspect they might be starting too be concerned of a short squeeze as the price goes up quickly and they are forced to purchase into the rally.
As a new investor beginning toe stablish a long term position, it is in my interest to accumulate my holdings ahead of the short interest crew jumping into the market and competing with me to acquire the 109,700 shares they need to close out their current short positions.
Looking back over the last couple of years, the level of short interest has been pretty consistent between 100,000 and 150,000 shares, which against a 50 million share float is almost irrelevant. However the low daily average sale volume of around 25,000 shares means that this is perhaps a little more significant - it would take a week or more of sales to cover the shorts.
Just sharing with other investors out of interest - sometimes useful to use other data points to help in assessing the big picture.
Cheers,
S