Uranium One Inc SXRZF

RE: RE: shorts are mistaken, and trapped

[yaleMBA]

Most likely you guys are reading into the situation.  Clients who want exposure to uranium will go long with either equity or calls.  They may also hedge UUU with puts or shorting.  For all the investors who read these boards dont draw conclusions from posters.  Institutions "usually"dont make speculative bets, such as shorting 24 million shares on a one way street down, thats how you lose ALOT of money.  Small investors who circulate these boards usually DO invest in one direction, and thats usually up and sadly 90% percent lose money doing this, but smart retail usually diversify and risk small amounts. IF posters on this board are trying sucker retails into selling, shame on you. I suspect the same actions happen on these boards as did at agoracom...its sad.  To all the retails out there, if you are invested in UUU and know the risks then you should be confident with your exposure to this company.  IF you risked a high percentage of your portfolio to UUU make sure you know your risk! As for the high percentage of shorts, not one firm shorted UUU, and most likely 5to 8 have shorted UUU to hedge against a much larger position. 

Strategy 1. If I had 24 million shares shorted most likely I am going to have 24 to 50 million shares long or long.  If lets say UUU does head south to 2 dollars, 24 million shares will be held short and be profitable. the other lets say 50 million shares would he be long either options or equity. Usually from my experience with this large of short position the risk is the downside is limited and the exposure to calls and long positions is LARGE.  You see, shorts can have only limited downside, when they cover (assuming it goes down) the price rebounds and a potential profit can be made with the options or longs.  Hedging can make a ton of money if the strategy is executed correctly.