FormerXBC Inc XEBEQ

RE:RE:RE:Could they possibly

[treehill]

I don't short, and perhaps am missing the point of the paired trade, but I don't follow the logic of going long oil/gas and short cleantech. To start with, any investor that just lumps companies into big categories such as cleantech and invests accordingly is asking for trouble. Market dynamics may be favorable for what XBC sells but lousy for wind or solar.

As oil/gas go up, RNG gets more cost competitive. With the current natural gas prices in Europe, anyone using XBC's equipment to generate RNG would likely be saving a lot of money compared to buying gas on the market. So XBC's share price should be following the share prices of oil and gas companies, not going the other way.

For companies supplying wind and solar equipment on the other hand, higher fossil fuel prices may not be useful. As a lot of fuel and natural resources are needed to fabricate and install wind / solar, we could be seeing their prices climbing. For those who already have such equipment installed, they should benefit from the rise of oil/gas prices as their product gets relatively cheaper compared to substitutes. So one needs to differentiate the players in the industry 

Ciao wrote: I would agree that further gains on the short side is very limited if not already stretched.

Someone had speculated it was a paired trade or hedge, long on oil/gas and short on cleantech. Overall, I would guess it's still a winning trade on paper, covering is something that could be painful and something they want to avoid (further manipulation of share price?).  The extremely high short position on the OTC tells me this is not your average retail investor shorting.

WIth the invasion of Ukraine yesterday, I don't know how much more market risk there is nor company specific risk that has not already taken place or has been accounted for.  Would they start to cover leading up to or at release of Q4?

tony08 wrote:

Gann999 wrote:
I wonder if next week when announcing the date for q4 financials if they would be confident enough to offer some range on where financials will fall. It could catch shorts by surprise if they threw out some numbers to reassure that q4 will indeed fall within or exceed guidance.

Like i already mentioned, i am not a day trader and i don't know much about shorters......

I understand the concept but something i find difficult to understand though is how come shorters are still at work against Xebec while the share price is so low.....

Is'nt it very risquy for them at this level and also are'nt the gain they can obtain rather small??