Final battle with shorts looming........I just came across this today after closing and I want to share that with the folks on this Board.
SMF's short position as of January 17 has reached 15.2 million shares and the current short interest ratio has hit 6.5 (- meaning it would take 6.5 days for the shorts to cover the shares shorted under that many days of normal daily volumes).
Here is the link for this information:
https://www.dailyfinance.com/company/semafo-inc/smf/tor/short-interest
So it looks like the final battle between the SMF longs and the shorts will be decided very soon, and the losers will be seriously wounded - financially speaking. The way I see it:
The longs should win because:
1. The SMF SP has been holding around $10.50 without falling any further for the past two days. That seems to indicate this may be the support level. On top of that today's closing has fairly heavy trading, very unusual for a Friday close.
2. The price of gold has been beaten down hard enough for the speculators to return to the metal to start another run. High tide raises all ships - even the leaky one. SMF is by no mean leaky, a strong boost in the POG should help.
The shorts will win because:
1. They have inside information that the company is in trouble and this will negatively impact the SP.
2. The shorts will continuously sell down the SP to get what they wanted.
My own thoughts:
I think it's more than likely the longs will win. If management is honest with the shareholders (that there is nothing operational wrong with the company), the shorts just picked the wrong company to infest. The company only has 272.2 million shares outstanding and shorting almost 5.6% of that total is insane. If the short covers happen, it'll be violent and fast.
I love to hear your thoughts on these facts and figures.