GREY:SXRZF - Post by User
Post by
fcabreseon Dec 06, 2010 3:09pm
496 Views
Post# 17807578
There Will Be Blood
There Will Be BloodI have to say that I'm seriously shocked that the short position is as large as it is.
UUU opened 2 cents below their 52 wk high at 5.65. If you sold short exactly at that moment, once the dividend is factored in, UUU would have to be trading at $4.58ish on Wednesday for you to be at your break even. And you know that most of the short sellers sold short at far lower sp. Considering that every analyst or investment house I've been following has one year targets on UUU well in excess of $6 and it appears that we might be on the cusp of a new uranium boom, I really can't understand why anyone would take this high of a risk in betting against conventional wisdom, especially considering they're going to be on the hook for a huge dividend on Wednesday. I'm betting Wednesday will be a down day for UUU as those just sticking around for the dividend scamper off, but it's going to be an absolute bloodbath for shorters in the coming weeks and months.
I'm not a huge fan of shortselling because of the unlimited downside, but I can think of hundreds of better potential short plays than UUU at this exact moment...lol.