JACKPOT! Cardinal Short sellers are covering high $4/low $5!As someone who previously hated short sellers, I now adore them as I come to understand and respect some of them. The honest ones at least.
They create great buying opportunities and with enough research, it's possible to get an insight on what they are doing.
I find that most short sellers are either very quiet or full of it. On Cardinal, they are quiet. They haven't hired paid bashers here. But they seem to know what Cardinal is up to so that points to the brokers assisting Cardinal in share issuances and financing as the core vector of attack on common shareholders?
In doing some research this weekend, preparing for a very lucrative 2018 short squeezing the crooked short sellers, I think I hit the JACKPOT on this stock?! I'd appreciate any and all feedback.
Looking at the stock price to short ratio, the time to short sell CJ was in December 2016 when it was trading over $10 and the time to cover was in August when it was trading in the $3 range.
In December 2016 they were working with consultants to evaluate the Apache reserves and financing to fund it all. During the first part of the year, when short sellers were mounting their attacks nobody in the investing public knew the backroom dealings. On December 2016, the OTC short was high at over 1M shares. None of the investing public knew about the pending acquisition but the brokers and financing "syndicate" knew; " a syndicate of underwriters led by RBC Capital Markets and including CIBC Capital Markets, GMP First Energy, National Bank Financial Inc., Scotiabank, BMO Capital Markets, Canaccord Genuity Corp., Cormark Securities Inc., Peters and Co. Ltd., and TD Securities Inc. pursuant to which the underwriters have agreed to purchase for resale to the public, on a bought deal basis, 30.91 million subscription receipts of Cardinal at a price of $5.50 per share for gross proceeds of approximately $170-million. The underwriters have been granted an option to purchase up to an additional 3,091,000 subscription receipts issued under the offering to cover overallotments if any, exercisable in whole or in part at any time until 30 days after the closing date. Members of Cardinal's board of directors, management and employees intend on participating in the financing."
That is a copy and paste from the summer but the deal as in progress as of Dec 2016 from reading all the press releases on timing indicators. I'm speculating there the financing brokers are the ones behind the short selling and torturing of average investors. They knew the dillution of the shares would be significant from 70M to over 110M shares issued.
The smartest short sellers covered in August in the $3 range which conincides with the smallest short ratio on the OTC!!! The second smartest covered on high volume in late September and late October in the $4 range and it seems the last batch are too greedy for their own good. They will either cover in the $5 range although they might be able to buy in the $4 range at best since the worst is over on the dillution. 2.3M shares is peanuts. That's the brokers getting cheap shares for themselves, friends and family.
Considering 10.35% of the float is loaned out to short sellers needing to buy back in the coming weeks, with cruide oil selling above $60 USD I'm sure they are praying for another oil crash but Saudi Arabia and Russia won't let Wall Street manage oil prices. They know that's a financial disaster for them. So the commodity pricing is on our side. Especially with the narrowing of the WCS/WTI differential. The short sellers are cornered, trapped. They have to cover in the $5 range or high $4 range at best. At worst, smart deep pockets will check out all the facts and will jump in big causing a massive gap up and short squeeze.
Keep in mind that 10.35% (1 in 10 shares) short sold is on the TSX alone.
There's also over 3M shares shorted on the US OTC under ticker CRLFF. And looking at the short ratio on that one, something really stands out: it really appears the US short sellers are the "smart ones" having covered in August
https://www.otcmarkets.com/stock/CRLFF/short-sales
Time for some more short selling investigation for me. I think I might be able to determine when/how they cover these large US OTC short positions. Short covering is not done via the OTC since it only trades 12K shares per day on average so 3.1M shares would take 261 days to cover.
But the short sellers on the OTC were continuing to grow in strides until mid December. The Dec 15th report shows the smallest increase in OTC short increase with just 15K added which is nothing. The tide is turning back to the bulls from the short selling bears. They were taking advantage of year end tax loss selling and got blindsided with $60 per barrel oil pricing.
I'm a amateur trader so I can only guess what's going to happen and in looking at everything, I'm planning to buy on the dips. If there are dips that is. Short sellers hate chatty crowds that clue in to their evil doing. So please let me know if any of this makes sense or if I'm out chasing unicorns.
And bashers/brokers/liars and other undesirables, I will put you on ignore on the slightest show of disrespect so don't expect a read or response.
Happy New Year to All - especially to all fellow Cardinal short squeezers and all honest traders and investors alike!