TSXV:MRS.H - Post by User
Post by
allibabbaon Feb 28, 2021 2:49pm
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Post# 32682029
Shorts!
Shorts!I'm no expert by any stretch of the imagination, however I have been keeping a very close eye on the trading activity and short interest during the last couple of months. Between December 21 and january 7, short positions increased by 215000 to well over 450000. During that time, our stock price was in the range of 0.17-0.21. Since then, 275000 short positions have been closed, most of them during the run to 0.48 which could have had a lot to do with the intensity of the run. That being said, there have been no new short positions added since early January (except the traders which short and cover within the reporting dates in order to not be included in the bi-weekly reports) which means that the 175000 short positions remaining were shorted around the 0.20 mark. These short positions are MASSIVELY under water at this point and are likely shorting again now in order to try and raise their short position average. As I said, I am no expert but I'd be willing to bet that those 175000 short positions won't be able to cover without losing money even if they average up. Again, this is just my opinion but I believe that the recent volatility has been created by these shorts to desperately try to cover those positions with minimal loses. In conclusion, keep in mind that even if they do manage to average up to the 0.75 range they still have to repurchase the 175000 shares plus the additional shorted shares to average up. With very little selling this could push the price back up once again very soon. If we get good news it will squeeze them even further. Just something to think about. GLTA