Highwood Asset Management Ltd V.HAM

Short Positions

[Loughatorick]

It would seem that everything is running smoothly at HAM and WTI price is in the high 70's. However total short positions are high in comparison to the average trading volume.

Any feedback from the SH board ?

[Loughatorick]

Another stock market chat room lists 164,982 short positions for HAM (at March 7th) vs an average daily trading volume of 10,728. HAM stock closed on Friday at $ 5.60/share whereas Morningstar lists the current value of a share at $ 10.07. There does not appear to be any short selling that took place in the last half of February, 2024 per IIROC data. In the first half of February 2024, IIROC

[Loughatorick]

The shorts are in an awkward position ! Stock has risen 20 c in the last two days - squeezed just a little on a stock with liow volume - at what price will the short positions be closed ?

[kavern23]

The shorts are probably picking on ham because they are so small so be drilling such expensive wells. A company for example like tourmaline can have a subpar Charlie lake 4.5m dollar well and it is not material to them. really high drill and well results torque with Highwood. But so far management team here has really delivered stellar results, I give them credit, seem very component team 

[Loughatorick]

Ok...I will bite, HAM is definitely risky with high debt load and large $ 40 million CAPEX plans. However, the company has no choice but to drill in order to retire the debt. The compnany is producing at 5,000 bpd which is  just below the 2024 budgeted production of 5,200 bpd.. Given the current production level and 2024 CAPEX, the budgeted production levels seem quite doable and given $ 80