RE:RE:RE:Some facts to consider ...THanks for explaining all this short stuff mes1, lots of very helpful posts on this board like yours and many others
Some more news maybe next MOnday, more assays and announcement of start of drilling on 600W maybe
mesa1 wrote: Greenday, I agree with you as to the likelihood that the numbers being near identical is a cooincidence for sure. Firstly the holders of those warrants only need to sell a fraction of the underlying market value of the shares they represent, given the deep-in-the-money exercise price.
As for waiting for the last minute to do so, it is common to see the cheque being issued and the warrants being exercised a week or so before expiry.
I would not presume that the warrant holders are insiders. I have not bothered to go to SEDI to see if there are any FCU registered insiders holding these old Alpha warrants, but I doubt it. And any insider selling short, even if covered, would have an obligation to report this through timely SEDI filings.
As an aside, there is definately a reporting delay to the numbers we get for the bi-monthly short position. Not sure why, but it all clears itself by the following report.
In any case, my main proposition was that no one should expect that there are 5 million "shorts" out there betting that the SP will decline. Other than day traders who may make such small bets from time to time trying to catch some swings in sentiment, a naked short on FCU would be a wild and reckless gamble.
I therefore suspect it's a combination of those warrants being exercised and the closing of the financing itself which allowed most of those shorts to be covered, and that the reporting of that will show up in the May 15 short position numbers.
Cheers