RE:RE:RE:NVEI and American short sellers
Nuvei decided to list on the NASDAQ and does business in the USA.
If they want to play in the US sandbox, you are likely going to attract more attention from both longs and shorts, on both sides of the border, though I don't believe U.S. hedge funds are barred from shorting stocks which are only listed on the TSX......?
Even if we discount the above, these things happen when you invest in common shares where you only own a very tiny portion of the total number of shares outstanding - other owners own the rest of the shares, and they are free to lend them out if they so desire, sell them in a panic, etc.
If you're long the stock and thought it was undervalued or fairly valued yesterday, or if you didn't own any shares but were waiting for the share price to suffer a significant fall so you could buy some shares at a cheaper entry point, wouldn't you consider a 40% one-day drop in the share price to be a great opportunity to do just that (unless the short report changed your mind).......?
If you think Spruce Point's report has no merit, then the share price should recover.
If Spruce presented false statements, I would assume Nuvei's legal department or outside counsel would pursue legal action against Spruce or at least insist that Spruce retract their comments.
If you think Spruce's report does have merit, but the statements they make about Nuvei are no big deal, then you can decide to hold on to your shares and hope / expect the share price to recover before long.
If, according to the text posted by slickk on this BB earlier today, Spruce thought "....shares of Nuvei Corporation (NASDAQ: NVEI) (TSX: NVEI) ("Nuvei" or the "Company"), face up to 40% to 60% long-term downside risk..." and Neuvi's share price dropped into this range today, Spruce may have already covered their short position and took their profits.
The point is, unless Spruce Point made false statements about Nuvei, short reports are fair game to publish and offer counter-arguments to bulls, which are usually plentiful and tout the merits of companies every day. Plus, shorts only make their money if other shareowners:
a) Loan them shares.
b) Sell at lower prices.
so short sellers need the cooperation of shareholders to make money, and if those shareholders react in this way to a short report, it's their shares and their decision, just like those who didn't sell / bought more today make their decision.