Short position interpretation Short position interpretation is entirely guessing game. There is no way of finding out the exact motive of short sellers. All short seller do not make money. It is lot more risker to short than go long as the losses in shorting can be unlimited. Some hedge funds have gone bankrupt taking the wrong side of a trade.
For a trader you have many tools for guidance regarding the short term direction of the stock. Moving averages are very basic then you have huge number of technical indicators, some are important others are repetition of main ones & some are just noise. Short position can be one type of indicator too. If there is nothing wrong with the stock & stocks get way ahead of its fundamentals some investors short the stock as trading position. There is nothing alarming about that short.
There are times that a short position is a clear warning. Still short sellers can have it totally wrong, but the potential shareholders / traders should exercise caution when short sellers attack the stock after the stock has lost more than 90 % of its valve.
The last report of short position of PSN is a clear warning. If you are conservative investors & do not hold a position in the stock then extreme caution till the dust settles & every thing come out in the open. During the reporting period Dec 15 to Dec 31 5410329 shares were shorted. That is minus the few shares of Mcreath that were covered as he mentioned on BNN. When this guy was covering lot more were shorting the stock. Beside the stock positioned jumped by 6.67 % of the total float to now 8.03 % from 1.36 %only. This is highest short position for the company in its entire history. This does not mean much because the company has a very short history & got itself in trouble for the first time. The most alarming thing is that the short position of 5410329 shares has been created a low price of $2.15. All the new short sellers are in money now. Some may have covered or might cover soon. But when you take such a large short position at such a low average price of $2.15 or when the stock is constantly created new all times lows means that some are suspecting that there are very serious issues for the stock or more bad news has to come which would take the stock much lower than. $2.15. One has to wonder if some of these short sellers are better informed than ordinary investors ?
The stock is off its low of $1.14. There was no retest of that low. Stock is forming a base around $1.40. It is extremely oversold. The stock would have a tendency of bouncing from oversold position from time to time where aggressive traders will also work it. Lot of bad news has been priced in so around $1.40 range so some shorts should cover with a 30 % profit in a matter of few days. Now if these short sellers do not cover they may be expecting more bad news & further drop in share price.
This present short report was important & proved that short sellers even at $2.15 after stock had lost around 90 % value were right. Now we have to see if they have covered or still holding or have increase their short position. If the short position increases further at even lower price then the short sellers would be expecting some issues with revenue booking. Decline in business & most of the other issues have been priced in so a further drop in price has been be serious accounting issues.
When the company comes out with their findings from the present investigation then investors would be able to properly assess the value of the company. If there are no major accounting practise issues but some AR write off & decline in revenue then if these short sellers they have not covered then will be big a short squeeze & big spike in price. Law suit is something one cannot account for. But once it has been established the this company will survive then shorts are cooked.
The investigation report would establish if these short sellers are right or wrong. When the report comes out then stock is going to move. Based on what is publicly known the stock can move in any direction & the movement can be very sharp.
Today the stock had a nice pop even on a down day. I would term it oversold bounce or some short covering. Instinet was the top seller when this large short postion was created. Today Instinet is the top buyer at average share price of $1.517
| Short History |  |
| | | Symbol | Report Date | Volume | Change | % of Float | |
| | | PSN - T | 2012-12-31 | 6,512,081 | 5,410,329 | 8.03 | |
| |
| | | PSN - T | 2012-12-15 | 1,101,752 | -877,675 | 1.36 | |
| |
| | | PSN - T | 2012-11-30 | 1,979,427 | -1,562,401 | 2.44 | |
| |
| | | PSN - T | 2012-11-15 | 3,541,828 | 2,377,421 | 4.37 | |
| |
| | | PSN - T | 2012-10-31 | 1,164,407 | 271,061 | 1.44 | |
| |
| | | PSN - T | 2012-10-15 | 893,346 | 4,076 | 1.10 | |
| |
| | | PSN - T | 2012-09-30 | 889,270 | -44,035 | 1.10 | |
| |
| | | PSN - T | 2012-09-15 | 933,305 | -10,050 | 1.15 | |
| |
| | | PSN - T | 2012-08-31 | 943,355 | -256,668 | 1.16 | |
| |
| | | PSN - T | 2012-08-15 | 1,200,023 | 128,303 | 1.48 | |
| |
| | | PSN - T | 2012-07-31 | 1,071,720 | -26,048 | 1.32 | |
| |
| | | PSN - T | 2012-07-15 | 1,097,768 | 89,700 | 1.35 | |
| |
| | | PSN - T | 2012-06-30 | 1,008,068 | -241,785 | 1.24 | |
| |
| | | PSN - T | 2012-06-15 | 1,249,853 | -5,869 | 1.54 | |
| |
| | | PSN - T | 2012-05-31 | 1,255,722 | 239,609 | 1.55 | |
| |
| | | PSN - T | 2012-05-15 | 1,016,113 | -49,642 | 1.25 | |
| |
| | | PSN - T | 2012-04-30 | 1,065,755 | 95,418 | 1.31 | |
| |
| | | PSN - T | 2012-04-15 | 970,337 | -431,567 | 1.20 | |
| |
| | | PSN - T | 2012-03-31 | 1,401,904 | 348,494 | 1.73 | |
| |
| | | PSN - T | 2012-03-15 | 1,053,410 | 208,050 | 1.30 | |
| |
| | | PSN - T | 2012-02-28 | 845,360 | 55,007 | 1.04 | |
| |
| | | PSN - T | 2012-02-15 | 790,353 | -977,476 | 0.97 | |
| |
| | | PSN - T | 2012-01-31 | 1,767,829 | 464,201 | 2.37 | |
| |
| | | PSN - T | 2012-01-15 | 1,303,628 | 787,599 | 1.74 | |
| |
| | | PSN - T | 2011-12-31 | 516,029 | 209,001 | 0.69 | |
| |
| | | PSN - T | 2011-12-15 | 307,028 | -103,383 | 0.41 | |
| |
| | | PSN - T | 2011-11-30 | 410,411 | 172,741 | 0.55 | |
| |
| | | PSN - T | 2011-11-15 | 237,670 | 237,670 | 0.32 | |
| |
| | | PSN - V | 2004-02-29 | 25,000 | 25,000 | | |
| |
| | | PSN - V | 2004-02-15 | | -42,000 | | |
| |
| | | PSN - V | 2004-01-31 | 42,000 | 42,000 | | |
| |
| | | PSN - V | 2002-08-31 | | -1,500 | | |
| |
| | | PSN - V | 2002-08-15 | 1,500 | 1,500 | | |
| |
| | | PSN - T | 2001-06-30 | 1,656 | 205 | | |
| |
| | | PSN - T | 2001-06-20 | 1,451 | -4,168 | | |
| |
| | | PSN - T | 2001-06-15 | 1,451 | -4,168 | | |
| |
| | | PSN - T | 2001-05-31 | 5,619 | -1,462 | | |
| |
| | | PSN - T | 2001-05-15 | 7,081 | 5,900 | | |
| |
| House Positions for C:PSN from 20121215 to 20121231 |
| 27 Dundee | 1,270,970 | 1,902,455 | 1.497 | 118,457 | 187,160 | 1.58 | 1,152,513 | -1,715,295 |
| 15 UBS | 1,015,385 | 2,338,002 | 2.303 | 269,108 | 623,629 | 2.317 | 746,277 | -1,714,373 |
| 7 TD Sec | 5,367,623 | 12,581,137 | 2.344 | 4,752,791 | 10,930,863 | 2.30 | 614,832 | -1,650,274 |
| 39 Merrill Lynch | 1,030,734 | 2,550,808 | 2.475 | 453,130 | 950,910 | 2.099 | 577,604 | -1,599,898 |
| 91 Jones | 385,900 | 538,589 | 1.396 | 0 | | 385,900 | -538,589 |
| 85 Scotia | 1,581,681 | 3,100,534 | 1.96 | 1,266,397 | 2,538,811 | 2.005 | 315,284 | -561,723 |
| 11 MacQuarie | 232,700 | 343,883 | 1.478 | 0 | | 232,700 | -343,883 |
| 80 National Bank | 1,470,987 | 3,916,049 | 2.662 | 1,238,462 | 2,996,155 | 2.419 | 232,525 | -919,894 |
| 3 AltaCorp | 196,900 | 267,229 | 1.357 | 0 | | 196,900 | -267,229 |
| 62 Haywood | 561,482 | 1,057,513 | 1.883 | 397,462 | 646,502 | 1.627 | 164,020 | -411,011 |
| 73 Cormark | 112,600 | 326,192 | 2.897 | 0 | | 112,600 | -326,192 |
| 44 Jones Gable | 503,500 | 1,458,555 | 2.897 | 398,100 | 1,037,133 | 2.605 | 105,400 | -421,422 |
| 90 Barclays | 130,200 | 251,065 | 1.928 | 31,079 | 97,402 | 3.134 | 99,121 | -153,663 |
| 124 Questrade | 283,926 | 610,050 | 2.149 | 210,825 | 437,668 | 2.076 | 73,101 | -172,382 |
| 22 Fidelity | 316,600 | 699,818 | 2.21 | 246,265 | 412,419 | 1.675 | 70,335 | -287,399 |
| 33 Canaccord | 867,121 | 1,641,210 | 1.893 | 823,336 | 1,250,243 | 1.519 | 43,785 | -390,967 |
| 37 MacDougall | 33,900 | 82,808 | 2.443 | 4,500 | 14,963 | 3.325 | 29,400 | -67,845 |
| 36 Latimer | 156,685 | 317,496 | 2.026 | 127,509 | 225,302 | 1.767 | 29,176 | -92,194 |
| 59 PI | 85,300 | 255,772 | 2.998 | 58,820 | 106,416 | 1.809 | 26,480 | -149,356 |
| 87 Beacon | 89,100 | 238,660 | 2.679 | 64,500 | 185,302 | 2.873 | 24,600 | -53,358 |
| 19 Desjardins | 603,161 | 1,074,913 | 1.782 | 578,638 | 1,209,631 | 2.09 | 24,523 | 134,718 |
| 70 Manulife | 23,563 | 53,687 | 2.278 | 1,300 | 4,246 | 3.266 | 22,263 | -49,441 |
| 10 FirstEnergy | 21,200 | 64,736 | 3.054 | 0 | | 21,200 | -64,736 |
| 121 Jennings | 39,800 | 90,183 | 2.266 | 18,700 | 48,551 | 2.596 | 21,100 | -41,632 |
| 48 Laurentian | 56,772 | 140,644 | 2.477 | 38,000 | 59,599 | 1.568 | 18,772 | -81,045 |
| 68 Leede | 28,300 | 83,734 | 2.959 | 11,000 | 16,300 | 1.482 | 17,300 | -67,434 |
| 82 Stifel Nicholas | 37,100 | 57,136 | 1.54 | 20,500 | 33,464 | 1.632 | 16,600 | -23,672 |
| 58 Qtrade | 62,765 | 109,484 | 1.744 | 52,498 | 84,416 | 1.608 | 10,267 | -25,068 |
| 72 Credit Suisse | 11,900 | 31,179 | 2.62 | 3,600 | 9,401 | 2.611 | 8,300 | -21,778 |
| 74 GMP | 59,249 | 179,159 | 3.024 | 51,043 | 127,176 | 2.492 | 8,206 | -51,983 |
| 77 Peters | 7,700 | 21,868 | 2.84 | 1,400 | 3,574 | 2.553 | 6,300 | -18,294 |
| 101 Newedge | 104,100 | 165,483 | 1.59 | 99,400 | 138,153 | 1.39 | 4,700 | -27,330 |
| 71 Brant | 6,000 | 18,380 | 3.063 | 2,000 | 3,860 | 1.93 | 4,000 | -14,520 |
| 56 Edward Jones | 3,500 | 11,150 | 3.186 | 1,330 | 1,662 | 1.25 | 2,170 | -9,488 |
| 102 Lakeshore | 1,000 | 1,500 | 1.50 | 0 | | 1,000 | -1,500 |
| 75 MGI | 2,300 | 6,670 | 2.90 | 2,000 | 5,720 | 2.86 | 300 | -950 |
| 25 Odlum | 400 | 1,304 | 3.26 | 106 | 342 | 3.226 | 294 | -962 |
| 5 Penson | 33 | 111 | 3.364 | 0 | | 33 | -111 |
| 143 Pershing | 0 | | 69 | 239 | 3.464 | -69 | 239 |
| 222 JP Morgan | 0 | | 70 | 232 | 3.314 | -70 | 232 |
| 67 Northern | 0 | | 300 | 858 | 2.86 | -300 | 858 |
| 42 Global Maxfin | 0 | | 1,300 | 4,420 | 3.40 | -1,300 | 4,420 |
| 28 BBS | 20,295 | 45,077 | 2.221 | 22,125 | 41,714 | 1.885 | -1,830 | -3,363 |
| 69 Jordan | 9,000 | 20,905 | 2.323 | 11,500 | 27,450 | 2.387 | -2,500 | 6,545 |
| 54 Global | 0 | | 2,580 | 3,745 | 1.452 | -2,580 | 3,745 |
| 57 Interactive | 1,577 | 4,155 | 2.635 | 4,390 | 8,941 | 2.037 | -2,813 | 4,786 |
| 95 Wolverton | 5,738 | 19,110 | 3.33 | 9,800 | 20,474 | 2.089 | -4,062 | 1,364 |
| 23 State Street | 0 | | 4,485 | 13,301 | 2.966 | -4,485 | 13,301 |
| 81 HSBC | 171,505 | 390,146 | 2.275 | 206,204 | 523,660 | 2.54 | -34,699 | 133,514 |
| 65 Goldman | 58,800 | 122,835 | 2.089 | 99,650 | 154,254 | 1.548 | -40,850 | 31,419 |
| 83 Mackie | 48,300 | 146,651 | 3.036 | 97,117 | 249,803 | 2.572 | -48,817 | 103,152 |
| 99 Jitney | 179,300 | 260,507 | 1.453 | 240,900 | 347,074 | 1.441 | -61,600 | 86,567 |
| 24 Clarus | 0 | | 64,400 | 211,189 | 3.279 | -64,400 | 211,189 |
| 9 BMO Nesbitt | 1,423,678 | 3,251,092 | 2.284 | 1,497,583 | 3,018,069 | 2.015 | -73,905 | -233,023 |
| 89 Raymond James | 493,006 | 1,138,729 | 2.31 | 580,048 | 1,181,786 | 2.037 | -87,042 | 43,057 |
| 46 Macquarie | 428,470 | 971,598 | 2.268 | 631,381 | 1,098,533 | 1.74 | -202,911 | 126,935 |
| 2 RBC | 3,757,876 | 8,831,998 | 2.35 | 3,976,331 | 9,549,932 | 2.402 | -218,455 | 717,934 |
| 53 Morgan Stanley | 921,127 | 2,748,097 | 2.983 | 1,140,164 | 2,208,160 | 1.937 | -219,037 | -539,937 |
| 14 ITG | 28 | 35 | 1.25 | 225,306 | 721,568 | 3.203 | -225,278 | 721,533 |
| 1 Anonymous | 3,485,100 | 7,893,126 | 2.265 | 3,769,400 | 8,177,006 | 2.169 | -284,300 | 283,880 |
| 123 Citigroup | 111,348 | 331,008 | 2.973 | 534,457 | 1,587,852 | 2.971 | -423,109 | 1,256,844 |
| 16 Paradigm | 26,500 | 36,620 | 1.382 | 547,500 | 1,785,315 | 3.261 | -521,000 | 1,748,695 |
| 79 CIBC | 2,393,644 | 5,301,470 | 2.215 | 3,454,658 | 7,759,924 | 2.246 | -1,061,014 | 2,458,454 |
| 13 Instinet | 7,102,190 | 12,442,342 | 1.752 | 8,935,645 | 17,462,175 | 1.954 | -1,833,455 | 5,019,833 |
| TOTAL | 37,399,619 | 80,544,647 | 2.154 | 37,399,619 | 80,544,647 | 2.154 | 0 |