The Big Short??There is no short squeeze.
In Canada, around 2.5 million shares, and in the US, around 667,000 shares were shorted. The US short data indicates that “days to cover” based on average daily trading vol of 2 million shares is only 0.3.
One curious fact is that on May 5 when the stock was halted for news dissemination of the latest round of Haywood placement, the shorts in Canada stood at around 200,000. However, post-announcement, on May 20, the shorts had jumped up to 2.5 million.
As for oil discovery, a good comparison is Africa Oil (AOI), They found first oil in Kenya and the stock went crazy going from below a dollar to over $11.00 The bulls were saying that AOI has found 7 billion barrels and it is worth $70.00. Eight years later, still no pipeline to bring the oil to market even though proven 1P and probable 2P reserves are in the hundreds of million barrels. Where is the stock now? Languishing at $1.20. AOI has written off the Kenya find that it once owned the whole pie which got watered down to 25 percent as it needed partners.
Until Reco comes out with concrete results of the shale oil-in-place embedded in the source rocks that will require fracking, the verdict is out. Whether the oil is ever produced, a big question mark hangs in the air.