Touchstone Exploration Inc T.TXP

London TXP shorting position update.......

[Proselenes]

Shorts update for TXP

July 2021 figures added.  A small amount of short closing over July - as seen below and also from the share price rise of late.

TXP Stock on Loan (Shorts) from Euroclear (% borrowed from CREST holdings)

Jan 2021____0.52%
Feb 2021____1.23%
Mar 2021____7.14%
Apr 2021____8.65%
May 2021____8.79%
Jun 2021____8.74%
Jul 2021____8.49%  (Loaned 8.792 million down from  9.032 million shares in June)

So still nearly 9 million shares shorted on London and still need to buy back and close.

[UnknownUser]

Could you elaborate as to what this means in terms of share price? Do you expect them to lower price share by shorting?

[Margin321]

In general a short is something you do to profit from shares that you expect will go down because they are overvalued or becausesome bad news (global, regional or local economy; market; sector; or company specific) is expected. Sometimes there is a short attack in which there is a coordinated (usually loosely) effort by multiple parties to move the share price lower by shorting it and also

[Proselenes]

Shorting is the process of borrowing shares and selling them, therefore creating artificial "excess" stock and driving the share price down. Brokers who hold shares for people, will often then "loan" them out for a weekly/monthly charge.  So shorters borrow this stock and sell it. Yes, they have to buy it back later - their game plan generally is to short a stock and

[Margin321]

Sometimes selling short is not trying to create a false market and drive shares down. You buy a stock because you have reasons to think that it is undervalued and will continue do well and its shares will go up. Or maybe you expect some success that could be very positive but is not certain to happen.   Buying it doesn't not necessarily make it go up. However the share price can be "

[Proselenes]

But what you miss is that Brokers make money from volatility.  They make money if the price goes up or down - what they need is volatility. They absolutely dont care which way it moves, only that it moves. This is why they have actively encouraged shorting and made it easier to do - and will never eliminate it. It does not create an efficienct market, it creates a manipultated market.

[Margin321]

Point taken - but if the shorts get too greedy it can add fuel to an upside explosion if something really unexpected and really positive comes along. No one ever complains too much that the brokers are making money when their shares are totally volatile to the upside. We can all hope!

[Davidblackgreen]

The explanation may well be they have shorted London which trades at 3c to 5c premium to Toronto and go long Canada by collecting on the bid with cheap offers. It's a nice zero risk play on TXP if you are able to arbitrage the stock. 5% of 300m shares at say 3c gives a risk free $450,000 profit so it's not just a cup of coffee play. It works nicely as disclosure in Canada is 10% but only