RE: RE: ABX big short at average $30.45 I do not track, own or trade ABX. One of my friend had asked me to look at the stock decline from low $30. I had looked at the data for him & for the benefit of others who do not have access to the data I decided to post it on this BB. Now I am curious to see if the short sellers are covering at these prices & would post the new short position by Friday.
I do not track the stock or know the trading pattern & cannot figure out if any short covering is taking place or the stock is being shorted further. Based on the present share price new shorting is not that attractive. Still you cannot predict the behavior of some hedge fund managers they may push a trade till it does not work.
About about 30 million shares are shorted which is a historical high the cost is $30.45 which means they have over $11 profit on their position. Some of the short could be related to Chile issue & some to weakness in gold. There has to be some hedge funds that are taking a trade against gold price. Eventually this position has to be covered. Most likely recovery in gold prices can trigger short covering.