TSXV:SLX.P - Post by User
Comment by
MudCreekeron Nov 24, 2010 10:31am
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Post# 17750364
RE: RE: Short position on SLX
RE: RE: Short position on SLXThis could be a distortion, due to the merger.
The date on mouserman's report was Nov. 15th, the day before the merger. Yet it says "SLX", which didn't exist at that point, so I'm not sure exactly what those numbers represent.
If they are the sum of both GGC and SMR, then perhaps they give us a reading on the extent that the two stocks were arbitraged against each other.
From the time of the announcement, the price of SMR was consistently higher than it should have been relative to GGC (i.e. > GGC/1.1). It was pointed out here several times that anyone who wanted a sure thing could just buy GGC, and short 1.1 times as many SMR shares. After the merger the two positions would cancel each other out, and a clean, risk free profit would result.
Perhaps 3 million odd shares traded in that sort of arbitrage. If so, December 15ths short report will show 0 shares short again.