Post by
PuerSimia on Sep 08, 2023 12:57am
Shorts Up as Probability of Financing Grows
August 31 shorts = 1,230,329 up 1,188,280 since Aug 15, the largest increase in the last 6 months
https://www.canadianinsider.com/short-report?ticker=ETL
Who'd be shorting this many shares this close to a pivotal pilot plant announcement?
- Someone who knows the pilot plant is a bust?
- Someone who is kicking in a ton of dough in a financing?
I don't think the first scenario is likely. It's way too early to make such a risky bet.
I think the second scenario is likely. It's common practice to short a stock when you are going to participate in a financing at a price that's lower than what you shorted at. Easy money, and lowers the risk of what you take down in the financing. The only real downside, is it can put a lid on upward momentum, and leave a bad taste for current investors who paid more than the financing price. Dilution is not a good thing (e.g. a 20% bump in the number of shares would be a bad thing given the cost required to go to production). We also didn't start trading over $4 a share until September, so, if the financing theory is correct, it'll be around $3.50-$3.75 in my opinion. Maybe an opportunity to get a major partner in deep for cheap. Some short term pain for long term gain. That'd be OK IMO.
Comment by
NoBigDealbcl on Sep 08, 2023 1:11am
IDK, shorting a major breakthrough in the Li industry at this time based on a financing deal seams pretty risky aswell. FOMO will not slow it... I see just a big squeeeeze. Hope your still in this.
Comment by
PuerSimia on Sep 18, 2023 10:58am
Well, the financing expains a lot.