Bernard's comment on Agora Agoracom: Small Cap Investment - HPQ-Silicon Resources Inc. - CEO BLOG - HPQ, PART OF THE 1% MOST SHORTED STOCK ON THE TSX-V (#22 out 1303) Hi All,
On September 15, 2020, we closed at $0.355 and the shorts were almost totally out of HPQ, as per IIROC report, there were only 128K shares reported as open short.
Since then, our share price as increased from $0.355 to $0.93 today, 174,929,233 shares were traded at an average price of $0.57, of those 25,553,520 were declared as short sales. As of Dec 15, 2020, as per the IIROC report, 2,006,0876 shares are classified as open short.
With their short position growing, these traders are doing what they can just to postpone the inevitable, the day of reckoning when they will have to cover their short position. But history as shows us that these predatory high-frequency traders with a short bias, we will not go away overnight.
How can they do that, it actually simple, these traders “modus operandi” is playing momentum and leverage it by placing multiple sales orders at different prices on the ask... (that is how we get multiple large sales orders on the ask with a large number of tickets looking to sell the shares (shares that they not have)) with a goal of capping the price at a level where they can cover at a profit.
The sell orders are offset with open sales orders with multiple open buy orders below.
But it is what they do when the caping schemes are demolished by strong buying that truly make them scums of the earth.
Taking the HPQ trading that occurred since Dec 1, 2020, as an example. From what I understand, a fund decided to increase its holding into HPQ on Dec 1, 2020, and to do so, they purchased, in the market, a significant quantity of HPQ shares. As a result, the buyer end-up forcing the shorts to cancel sales orders thereby allowing HPQ share price to run higher…
Seeing that momentum was not in their side, the high-frequency traders changed their short bias to long, covered their shorts and kept on buying.
During that period, their agents on the BB started to PUMP into something big my webinar in NY so that they could sell shares into the hype they created and then used that hype to re-price their short position higher.
During the webinar, they move back their bias to short and started dumping shares in the hope of attracting nervous investors to sell them the shares they disparately need to close their short position.
The numbers seem to concur with the timeline.
Between December 1 and 15, HPQ traded over 42M shares, of those 7,450,258 were short sales at an average price of $ 0.742 and the open short reached 2,006,087, making HPQ part of the top 1% TSX-V shorted stock (#22/1303).
HPQ is moving forward with its projects and that is where I am most active, but I am aware of what is going in the market and the BB with the lies being spread by some posters, so I thought that some of you would appreciate my take on what I see going on in the market.
PS: ( I think that I may have identified one of the funds doings illegal short trading on HPQ, and if I have time, I will expose them to IIROC and the OSC, who knows I may get some of the rewards…)
Regards,
Bernard Tourillon