Short Sellers The real question that needs to be asked is: To what information are the short sellers privy and why are Eric Nuttall, Bruce Campbell and so many other analysts completely unaware of it? Ostensibly, Nuttall has regularly met with management and ought to be far more reliable as to the company's future prognosis than these short sellers.
Having said all that, the markets have proven time and again to be utterly irrational. The takeover of Progress energy and NAL earlier this year at gargantuan premiums is ample proof of this. There is nothing more telling than the premiums other companies are willing to pay for assets.
We all know that patience is not only a virtue, but often yields fabulous returns. Unfortunately, the process can be exceedingly painful.
I am heavily invested in Legacy, primarily based on the fact that the Sprott Energy Fund has done its research and has invested so much in the company. I hope my faith is well-placed.
As a final note, I would continue to watch very closely at all insider activity, as it can be quite telling. Paul Colborne's accumulation is encouraging, whereas the other insider's sale of 60,000 shares, although concerning, is less worrisome given that it was an isolated sale and bears the hallmark of an inexperienced seller, occuring right at the bottom of the current market at $5.20.