ShortsI think shareholders need to stop focusing on short positions of this stock. I think LEG mgmt has looked into it in detail and are of the understanding that it is not really a naked short position. See below for Q&A from the transcript in which they were asked about it.
Operator
[Operator Instructions] Your next question is from [ph] Fred Holliman (28:10), who is a retired investor. Your line is
now open.
<Q>: Yes. Trent, I'm wondering about the $35 million shorts that I hear all the time on the stock. How is that affecting
your stock price?
<A - Trent James Yanko>: Yes. I mean we look at that, we see that report. It comes out every couple of weeks. And
unfortunately, the TSX has difficulty really tracking the nature of those shorts. We've done a lot of investigation on it.
There probably is a component, a real short component on the stock. But from our evaluation and what we've talked to
you from a lot of the investment dealers and sales and trading guys is that we think a big portion of that is us being
utilized in some of these ETFs that are being set up that you can convert income to capital gains.
Legacy is a decent capitalization company. We don't pay a dividend. We're fairly liquid. And I think we are well-suited
to be utilized in these ETFs. So without going into a ton of detail, there is no real – there is no – I don't think there's
really an opportunity for some significant short covering in these type of instruments. But it does look wonky on the
short report. And Matt, do you have anything to add to that?
<A - Matthew L. Janisch>: Well, one of the other things that we look at in analysis and what Trent said is completely
accurate. One of the things we look at is the cost to borrow Legacy stock, which is also an indicator of the true short
position. And the cost to borrow Legacy stock is actually quite low from what we've been told.
So that, again, indicates that the short position, a significant portion of it is not a real targeted short position. So it's
pretty difficult to look at that number and believe that it's a fully fundamentally targeted naked short, so it's a complex
issue. It's something that we've discussed with the TSX and they are continuing to look into it.
<Q>: Okay. Thank you.