Who Likes Short Shorts?Thanks for your research LAcafe. If dataexplorers info is correct, this is really quite interesting. The TSX Venture data show only 126,000 shares were short as at Oct 31 By the way, our huge 8.8 million share trading day was Oct 28, when the stock hit the year's low before closing up thanks to a 3 million shares cross by TD which prompted a late day rally I guess it is not terribly important to know exactly what days the 4 million shares were borrowed. The significant thing is that it happened in the last 2 weeks or so, at a time when Canaco has been sliding into the abyss.
It is tempting to conclude that short selling has been responsible for our woes of late.
Coupled with the strange goings on with Tanzanian Royalty, it seems to me that Canaco may well have been subjected to the classic trading tactic known in the old days as a bear raid.
But this is great news.If there are really 4.5 million shares short now, then someone is going to have to buy those shares back on the open market at prices probably less than $1.60 or so (a guess), or suffer a loss. That is a lot of shares to buy. Imagine if Canaco were to report some good news, or even to report that there were no corporate developments to account for the unusual trading activity of late. When Tanz Royalty did this Thur at noon, the shares rallied huge.
I have to admit that I have enough of a mean streak in me to really enjoy the scenario whereby the November shorts burn their collective arses.