RE:RE:RE:why down today?
HermannHaller wrote: It seems likley the shorts are playing some game here with the timing of the SIB. Perhaps as you say they wanted the share price to stay up, so the SIB would fail, and now today they are shorting again. But I can't really understand how that helps them. Ultimately, the company is over-capitalized and wants to return $115 million to shareholders. So maybe another SIB, or new NCIB, or special dividend. Whatever method the company chooses it will push the share price up, and hurt short positions.
From what I understand it would help the shorts a lot, not having any shares bought back. If you own shares in a margin account, a brokerage firm will let your shares be borrowed and sold for a short position. (I understand this is not possible from a cash account)
So, if you are one of these:
a) a person whose shares were borrowed and sold the second person, or
b) the second person who bought borrowed shares.
and you decided to remit your share for the SIB the short would need to come good and buy shares to replace the shares they sold (situation for person a) or buy shares so you could remit the shares you have (situation for person b), either way the short is in a difficult position.
So from the information I found currently 40.05M shares outstanding, 3.9M shares currently shorted (from canader July 31 short update post) so total shares in market 43.95M. The SIB could buy a maximum of. 4.56M shares back. So, depending on who tenders their shares for the SIB, it could have serious impact to the shorts. Since the shorts are some of these fancy investment houses they probably figured out the impact and mitigated their risk, imo.
ps or I can be completely crazy.