Short Interest etc.
Wynde... I dont disagree that the value of the OTC Short Data is mitigated somewhat by the lag.... although I am struggling a bit to see how DEC 30th data is a 6 week lag ?
Nevertheless.... looking at the data we have, combining Dec 30 OTC and Jan 15 TSX... the combined short has decreased from approx 40mm total to 35mm total. Not insignificant, but that is still ALOT of stock sitting short relative to the actual trading float ( net of all the stock held by Li Li, PSS, Pierre, WestCoast Block, Thomvest and some of the other long standing institutional holders)
Obviously more of the OTC short may have been covered since Dec31.... but the spike in the lending rate wouldnt suggest that....
Its quite something to watch the daily trading, and the activity coming out of CIBC, Morgan Stanley , Merril and being put thru Anonymous. Yesterday a big block of 250,000 shares was stacked on the offer , right above the 50 day moving average, backed by a bunch of 100k plus blocks pennies higher. This WREAKS of a hedge fund / shorter ... who understands the power of technicals... working to keep the share price from moving above the 50 day moving average. A significant and sustained move above the 50 day average would quite widely be seen as a buy signal, affirming the resumption of a broader move higher. Rejection of the 50 day MAV would signal a retest of the next lower resistance points $2.15 and $1.90.
So the big blocks get taken out... causing an almost instant spike up to $2.29... followed by a meticulous and sustained sell down effort by CIBC and MS... culminating in the last minute sales pushing the price right to the 50 day MAV. TEXTBOOK.
make no mistake. These guys are short... they have their asses hanging out here. I have no idea what they think they are waiting for in the sense of a company specific negative catalyst... given it appears far more likely that there are imminent REAL positive catalysts.
It looks more and more like these guys might be short a basket of companies in a pairs trade against a long index position... in which case they have likely done very well...and are less sensitive to company specific price action. This however makes them more vulnerable to a company specific positive... and to me thats the highest likelihood here.
I would love to see an affirmation of some kind of the PSS warrant exercise. The guy is an absolute rainmaker... Wouldnt it be nice to get some affirmation comment from him regarding what is going to be an almost 19% interest in PLI ?? or perhaps even some re-expansion of his interest and a more proactive role ??
I know I have said it over and over... but I really want to see PLI engage a Tier 1 US investment bank as part of all of the catalysts coming down the pipe... Accelerate the move to Nasdaq.
As I posted 2 years ago... I want the headline... Prometic Hires Goldman Sachs for Comprehensive Strategic Review ... leading to Analyst coverage and Lead Underwriter status. You watch the shorts run for the hills on that one....