Reconnaissance Energy (Africa) Ltd V.RECO

Short question

[cyrustg]

Will the shorts have to cover their positions on Thursday due to the holiay and the weekend ?

If so , it could make for a nice Christmas present for the longs !

[Goaweigh]

No they don't, if they have adequate margin room they can stay short indefinately.

[cyrustg]

Thanks

[scatman]

Technically that is not correct. Shorts can only stay short provided there is stock to borrow. If the shares that are borrowed are called then they may have a buy in and if the stock can't be found then it has to be coverd. This can happen in certain circumstances, such as lender calling in stock, stock moving from the margin side of an account to the cash side to name etc.... Naked shorting

[Goaweigh]

Yes technically you're right, but I doubt there will be a buy in, and I doubt there are many true shorts. There's a huge in the money warrant position which can be used as a hedge, it's a traders dream.