RE:RE:Institutional rebalancingAll else being equal, the heaviest short percentage days are Monday/Tuesday and the lowest short percentage day is typically Friday.
With respect to HEXO shares, Anonymouys functions to facilitate block sales as evidenced by the constant negative slope of net sharholdings
shown here.
It is noteworthy that the slope of this line turned increasingly negative after the insider sales at the beginning of May and has remained so ever since . A significant dip occured at the end of July, when HEXO listed on the NYSE. The uplisting only served to introduce more sharks/shorts into the pool and amplify negative earnings sentiment.
While HEXO management precipitated the reversal of HEXO market sentiment with the mass sell-off on knowkedge that earnings would disappoint, CIBCs downgrade was the catalyst that cemented HEXOs downward trajectory.
I looked at the financials to understand why CIBC downgrade a stock that not two months earlier it had issued a $50 million credit facility (actual loan advance 35 million in Feb). Loan terms required payments at each quarter. According to the Q3 financials, HEXO shows the full amount of the loan on its books as of April 30th indicating to me that no payment occured in the quarter the loan was negotiated. Missing or late payment would undoubtabley be sufficient cause for CIBC to issue the downgrade. HEXO IR advises after July 31st (end of Q4) that it did not miss a payment. As evidence of this I see an
upward blip in CIBC net share holdings as of this date.
What is clear is that untill and unless CIBC acting as HEXO's banker upgrades the stock, it will be out of investor favor.
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