RE:RE:RE:RE:Various thoughtsDJDawg wrote:
So teach me. Given the spike in shorts that you noted, does that mean some people out there may need to by up a moderate size group of shares to cover the short? So if the number of shares on the ask are not huge, then that could trigger a price spike?
Well I'm certainly not schooled enough on Bay Street shenanigans to consider myself a teacher...I'm merely throwing out my 2c worth of speculation based on the reported short activity and sp action. The latest shorts out are at 870k as of Nov 15th, so 273K were already covered and my guess is when we get the Nov 30th update, shorts outstanding will likely be under 500K.
But back to your question. Yes, the shorts need to buy to cover their exposure. Prior to the LIFE announcement, outstanding shorts averaged 100K or below, and I'd guess by the end of December it will have settled back in that range again. Without any near term catalysts they can just cover incrementally, as part of a more subdued daily volume. I'd imagine only a sudden unexpected spike over .22 might prompt an immediate cover response.
As an aside: a game the institutions used to play was shorting into a private placement, covering with the pp shares and then keeping the free warrants. This was exposed many years ago, so I imagine that loophole was closed. Does anyone know?