FDR and two positive factorsTwo factors, not including the higher than usual viewership and chatter levels on the other bull board. Where I see keen observers have already made these points. Please allow me to summarize and add a little colour commentary.
First, a total evaporation of the short position these last two weeks. Most of those shorts may have be “pre-sales” by warrant-holders in advance of exercises, but it doesn’t negate the value of the signal. No one wants to be short with lots of good FDR news expected soon. And the recent buying flurry of April 10th would have to include more than a few true naked shorters getting neutral.
Second, the high trading volume since April 4th. Probably five million shares have traded. Plenty of opportunity for remaining warrant holders to exit, if they’re so inclined. We know there must be a good-sized number of them who have no intention of selling. They’ve said so publicly. So there can’t be too many FDR shares left to offer by now.
Who knows when the time is finally up and FDR can re-rate higher to a more realistic price? But with spot gold crossing over $2,400 for the *third* time as I write this, we couldn’t ask for a better confluence of events.