The Long and ShortInvestors don’t know who shorted the stock as IROOC doesn’t publish the name of the actors.
There are roughly 2.4 million shares and 330,000 shares shorted in Canada and US respectively.
All shorts - covered or naked - must be legally declared. Pre-borrowed for former or with expectations of being delivered for latter. Shorts can be anyone from professional traders, investment funds or even insiders.
There were a ton of cheap
warrants and options exercised for shares by insiders in 2021. There were also lots of insiders selling.
Insiders could short sell “against the box” from shares they owned. It would be a net neutral position - locking in the profits - when later they unwind their positions and deliver the shares to cover the shorts. They do that so as not to spook investors that they have effectively sold their shares.
IIROC does not publish the identities of short sellers. So, there is no way of knowing.
As I said a few weeks ago, the technical chart looks like it could break down.
I am still befuddled why no drilling data from 6-2 well were published when the Co started drilling 6-1 well except saying they found a petroleum system with a trap in 6-2.
I recalled Lundin’s Horn Petroleum years ago (renamed Africa Energy) said they discovered a good quality oil system with the presence of a trap in Puntland without first publishing data before moving on to a second well and raising more funds. The stock subsequently tanked when they announced that there was no trap and the oil had migrated away.
Similarly, Eco Atlantic said they found good quality light oil without giving any data and moved on to another well. The stock shot up on hype but later collapsed after it was found that it is only non-commercial heavy oil.
Reco could, in fact, discover a major oil field when they do announce results of flow rates, viscosity, thickness and API data etc. etc.