OTCPK:NNDIF - Post by User
Comment by
HomerAndCompanyon Jan 31, 2017 4:45pm
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Post# 25779875
RE:RE:Zinc > $1.30/lb today. Shorts need to lock in profit soon.
RE:RE:Zinc > $1.30/lb today. Shorts need to lock in profit soon.BB, What I was trying to say is that shorts would be
wise to lock in their profit soon. I expect the shorts to lose money if they stay short too long. IMO it is not wise to be short this stock at the current SP and current zinc price. Of course they can choose to stay short & pay the dividend & take the risk of an upward spike in the SP if they really want to & can afford to. But I think the odds favour the longs. Perhaps the 1.9 million shares that were shorted as of Jan 16 will contribute to a nice SP spike when the shorts decide it's wise to cover?
Bigbird9999 wrote: No time limit on when a shorter has to close out his position. He can stay short forever waiting for SP to fall as long as he has deep enough pockets to pay the dividend of the shorted stock and interest on the loan. He can stay short indefinitely UNLESS the lender calls back the shares (this is very rare) or the brokerage decides that there is little to no likelyhood of the shares falling below the shorted price (like a takeover offer) and closes the position out under the terms of the account agreement. In which case he can lose up to 100% of his investment.
BB