RE:Short Interest IncreasedThe short form prospectus issue that closes on Thursday was offered at $2.25 when TVE was trading at $2.38. Whenever shares are issued below market, there are going to be people who have no interest in owning the company or may not have any interest in oil, but are happy to take free money by taking part in the issue and shorting the same number of shares at the higher market rate without taking any risk between the time of committing to the issue and actually getting the shares.
They will then reverse the trade and take their profits this week or early next.
Meeky wrote: Anyone know why there is so much short Interest in TVE? It just increased again by another 3 million to 22 million shares shorted. Is there going to be a short squeeze or are the recent acquisitions not that good? Even BTE only has 26 million shares shorted. Thoughts, Anyone?