FormerXBC Inc XEBEQ

short position

[Ciao]

short position has dropped from 3.1M to 1.4M shares for the 2 week period ending July 15.  

likely a contribution from covering with received shares from the $3.60 bought offering.

[tamaracktop]

Exactly! Which is significant for a very simple reason. It means there remain 1.4 million naked shorts. Period. Anyone who sold short to cover with the new offering has already done so. There is zero benefit not covering the short immediately, as they had established their profit the moment they sold. Waiting to cover has zero influence on their ultimate return and in fact reduces it, as they

[tamaracktop]

Days to cover all shorts and close the positions by buying an equal number of shares in the market. The number of trading days it would take based an recent average daily volumes. Four to five days of short covering buying exclusively. That is remarkable for this stock. As remarkable as the fact the warrants never traded at a measurable time premium. This observation may well be worth remembering.

[tamaracktop]

More on that subject, and with no intent to offend anybody... Many people have heard the expression "Short squeeze". Some know what it means, some don't. For those that don't, a brief explanation. To short a stock one simply reverses the order of buying and selling. Don't worry about the mechanics, your bank or brokerage takes care of it. If you think a stock is going down

[Wheels]

Great explanation! Cheers!

[kulewater]

Appreciate the readout.  I expect the short position to evaporate as we get closer to August. No doubt there was some hedging going on with warrants banked. XBC is packed with cash in a buyers market. Lots to look forward to. Have a great weekend all.