Uranium One Inc SXRZF

RE: RE: 2 days to cover

[PeterPiper]

"You mentioned that big money can put a huge squeeze on. I'm surprised that has not happened already."

Actually, there is a good reason why they have not as yet.  If they had done it last week then most shorts would have covered and we would have peaked around $6.  At $6 the amount of buying (except for remaining shorts) would dry up IMO.  Not many would want to pay more than $5 plus the dividend, since the stock was valued around $5 before the news.

But now, there are only two trading days left.  I expect huge volume in the morning, with last minute shoppers trying to get in below $6 competing with shorts trying to cover.  The last minute guys will stop buying once it goes above $6, but then there will still be a lot of shorts who have not been able to cover.  This could send us a lot higher on Tuesday and there will likely not be enough time left for it to drop back by Tuesday's close.

Longs are in a great position.  The only action we need to consider is at what price point do we take our profit on Tuesday and give up the dividend.  Say it goes to $7 Tuesday afternoon then I for one would definitely sell.  (I might be tempted above $6.50).  After all I would be capturing a big profit, with the opportunity to buy back much lower after the dust settles.