RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:FIRE Shorts to Apr16/20maritimedreamer wrote: Opt, from my undestanding we have seen an increase in short positions since Dec 2019 where right now i believe we are at the highest recorded (?) 12.2 mil. That said, who holds the shorts and why? do retail really have ability to short this stock this low? i suspect not....... deep pockets know supreme has a strong future.
Why do you think if the "deep pockets know supreme has a strong future", the bonds aren't trading at 90 (~12% YTM) or more?
The most outspoken bulls on the board aren't that confident about their forecasts so they need liquidity as a hedge but deep pockets can't generally count on liquidity so why wouldn't they buy the debentures if they basically offer "free money"?
This "free money" assertion assumes FIRE can refinance FIRE.DB one way or another which doesn't seem as high a bar as isignificantly increasing sales and having the market cap increase by $300 million dollars in 15 months.
I don't know what is going to happen either way.
I'm just asking questions.
As for the short interest, maybe they are a bunch of dummies like me that think it makes sense for the company to do small equity issues where these short sellers could cover their short positions at a profit and then rinse and repeat every quarter.
It would be great news for FIRE.DB and maybe for FIRE too as there would be less concern from less intelligent people about the refinancing so they might buy equity sooner rather than later.
I am long FIRE.DB and I am not short the common. I will never short the common.