OTCQX:GXOCF - Post by User
Post by
MonsterInk2on Oct 30, 2019 1:45am
206 Views
Post# 30284924
The reason why people short sell GXO
The reason why people short sell GXOPreviously GXO paid dividend.
Short seller was responsible for paying the dividend to the lender of the stock.
Now
#1. Institution won't buy GXO because it is too risky. We all see the stock from $9 high down to less than 50 cents.
#2. Short seller has no fear to establish short positions on this because there is no dividend. So almost cost nothing but time.
#3. GXO basically cannot pay dividend due to huge amount of debt. Paying dividend will hurt the balance sheet.
It probably takes 6 years maybe more for GXO to pay off the debt according to current speed of paying debt.
So, I assume this stock won't go up for very very very long time.
Actually it is pretty safe for you to short sell this stock because institution won't buy and you don't have to pay the dividend for lendding the stock.
The amount of the shares from insider buying was just 35000 in Oct.
It is almost 0.0009% of the whole outstanding shares.
You tell me it is BULL or BEAR.