RE:How about "enough of the short talk"Sorry Wittman,(and Closely). But your both dead wrong on this one. Google securities lending, cost of borrowing shorted stock. Its a major factor a hedge fund/shorter considers when evaluating the merits of establishing or maintaining a short position in a stock. The fact that the cost to borrow pli's stock has tripled recently is indicative
of the shares available to borrow becoming increasingly scarce. And thereby becoming costlier to be short. Think of it as a negative dividend. The fact that major holders have united recently to limit the stock available to borrow is coearly working despite the large float.
Anyone who knows this company well, understands there is a large float, but they also understand that a vast majority of the float is effectively non trading because its held in the hands of long term holders with a long term view
If this whole stop lending initiative gains more momentum amongst retail then
it
will make this stock less attractive to be short. The fact that its happening with a. Ounce in share price and improving fundamentals is a great setup
for a really significant squeeze. The Dec 15 otc short was almost 30mm, combined with the tsx short of 10mm and ur at 40mm plus. If you consider and understand that the true trading float is prob 300mm, then 40mm short becomes scary for a shorter
if it moves the wrong way. There simply wont be much for
sale til
alot higher.