Gear Energy Ltd T.GXE

Shorts having to pay the dividend

[tylerreddick]

I laugh at the clowns who think the shorts suffer because they have had to pay the dividend. How much money have the shorts made as the share price collapsed? A heck of a lot more than the puny dividends they had to pay.

And yet GXE continues to borrow to pay that useless and unsustainable "dividend".

[oilisswell]

Most everyone agrees that the dividend is not necessarily a wise decision, but the fact is that anyone with short shares hasn't made anything, yet. They first must cover. Consider that on Dec 22, 2023 there were 4.4 million shares short, and now there are 7.2 million shares short, I would say that waiting for the share price to drop below 64 cents while paying interest and dividends, in order

[lovehockey]

In general you are correct. However I learnt about fake shorts with another stock and no longer do I  trust published numbers of short shares. What happens is two washtrading partners (lets' call them Partner A, Partner B and Partner C) do the following: on a slow trading day Partner A borrows millions of shares and sells them to  Partner B, sometimes it happens on obscure exchanges.

[lovehockey]

Three washtrading partners in this scenario but it can be way more than that. 

[oilisswell]

While washtrading likely continues to occur, it has been illegal for a long time. Many firms have been fined for doing so, many have not. A similar but legal type of trade is done by market makers. We see this often with 100, 200, 300, 500 share trades etc. all day long. Generally speaking neither will influence short positions as the trades are closed out by the end of the day. Washtrading on a

[lovehockey]

Washtrading is illegal but next to impossible to prove so it exists and happens a lot specially with companies with low natural volume.  

[Maxmoe]

And yet we are all bemused by the fact everyone is making more money than you are with no investment and no cajones to actually short. What a Tylerred. The best argument for eliminating the dividend is the fact nobody seems to care whether they pay it or not. Conservative investors that buy stocks for a dividend yield, primarily or only for the yield, are gone anyway by now out of concern it will

[Roscoe747]

As inflation, high interest rates and recession effects begin to bite, I wonder how it will affect investor sentiment. Will fundamentals ever recover importance from anti-oil narratives? Real demand is growing but will it ever outpace supply?