Post by
ConnectTheDot1 on May 01, 2018 2:20pm
Short positions since the merging announce!
Short positions of WMD vs HIKU Hiku dropped was due of short positions as 45% traded value are short positions on the last update of this May 1st! WMD Short positions Apr 2 2018 4,830,230 $8,076,677 34.908 Apr 16 2018 2,800,382 $4,098,819 27.412 May 1 2018 2,474,686 $4,746,983 16.982 https://shortdata.ca/?c=weedmd-inc.-short-sales&sym=WMD.V HIKU Short positions Apr 2 2018 4,808,877 $12,780,171 53.126 Apr 16 2018 4,159,390 $7,693,233 38.275 May 1 2018 5,184,879 $8,537,959 45.084 https://shortdata.ca/?c=hiku-brands%20company%20ltd.-short-sales&sym=HIKU.CN Here are some observations: -Before the merging announce: As we can see the shorts started reducing the positions on both companies -After the merging announce: As we could expect due of arbitrage between Hiku and Wmd (cheaper to buy WMD to get HIKU) There was an increase in HIKU short positions and and 45% of traded value were Short positions While as WMD, with the news of merging the short positions are reduced more and ONLY around 17% of traded value were short...so there are more long buyer than short comparing HIKU!!! As WMD depends on HIKU... which dropped due of short pressure, so WMD dropped too... ...that could created a downward spiral!!! =>As I observed that the short had started recovering before the announcement of merging... HIKU could be back in the 1.70$ and higher! GLTA!