TSXV:PQE.H - Post by User
Post by
Geodan2on Feb 25, 2022 11:17am
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Post# 34461534
Shorting may explain all the weird stuff, 99.5% shorted
Shorting may explain all the weird stuff, 99.5% shortedWhat a mystery! Then today noticed Petroteq in 99.5% short. Where is Wall Street Bets when you need them? They should be all over this, and BTW it is shorted heavily.
Now why? Sure enough if you buy and tender then short, it does hedge it, and maybe post tender working the leftover stock drops? Could be brilliant move. It can explain all the sells, it is short hedging. That could make sense. Just checked PQEFF is 99.5% shorted at IB!
That makes it real interesting. In an acct there have 125,000 shares and 123,600 is lent by shorts. A short squeeze could happen. Now all the weirdness makes more sense. The tens of millions of shares sold can be from people tendered that then short it by lending from others AND I am tendered yet IB is lending those tendered shares to shorts. At IB at least they can not short any more.
Complicated any thoughts? Any insights? What a unique situation.
Updated: this is not a risk free tactic. If PQEFF gets short squeezed and think about 50% of the float is in tenders like mine. So how to they cover if stock is .70? Their tendered shares will get .58 so they will lose more than they can get. A mind twister.
I was in Peabody Coal squeeze. When it was like .10 in bankruptcy someone bot more .50 calls than stock could cover, then started exercising, think it went to like $3, so .05 option became $2.45 options a 50 bagger for the squeezers. I tagged along for the killing. One more thought, if Petroteq asks exchange to stop lending tendered shares or heck at end that automatically happens, hmm would be huge short squeeze.