Barkerville Gold Mns Ltd BGMZF

RE: RE: RE: RE: RE: Who's feeling the pressure now

[ovis]

>>2.5 million shorts outstanding.  A short squeeze could easily see those who are short lose 2 or 3 times as much as longs can.  Just something to think about. <<

 

2guys, Don't you think that the 2.5M shorts outstanding just might be related to the August 2012 warrants / bonds?

 

I totally agree with you that a naked short of BGM would be a risky move. But a short sale of shares at $1.20 while you hold bonds convertable at 85 cents a share is just smart trading as you would have locked in a risk free 35 cent profit. That extra 35 cents on 85 cents is about a 40% return for what a month or two hold time, probably much less.  A nice trade if it falls in your lap. And somehow, just as the convertable bonds and warrants come due the company releases a story about 65M to 90M oz of gold potential in the old cow.

 

I tip my hat ot the BGM pump operation. Well played.