Post by
DaNixon on Mar 24, 2021 12:25pm
Heavily shorted....
shorted to the tune of 70% as of March 1. They can sell imaginary shares all they want, but they can only buy real shares to cover. I'm waiting for more dips to add to my position. Company has good backing and a good story, operating in the Shopify ecosystem, personally I expect online sales to grow, not shrink in the next ten years.
Comment by
DaNixon on Mar 24, 2021 12:26pm
https://fintel.io/ss/us/wecmf
Comment by
freeradical1 on Mar 24, 2021 1:49pm
Lockups are starting to expire so I wouldn't be surprised if the short positions are hedges. The price is down about 30% from the Stamped conversion. I wonder if they may have to reprice that deal. If I was the Stamped CEO I wouldn't want to take a $3M haircut.
Comment by
freeradical1 on Mar 24, 2021 7:08pm
Looking at some of the large crosses in the past couple of days I think the short selling is hedging positions. If you have shares that you can't sell due to a lockup or other restrictions you sell them short to guarantee a price. When your shares become available you then settle the short position. Under this scenario there is no short squeeze or covering that can be triggered.
Comment by
DaNixon on Mar 25, 2021 12:52pm
interesting, thank you for the info on that setup. I guess it's waiting for the acquisitions to bear fruit to the fundamentals. Though I am quite bullish on the Shopify ecosystem in the years to come, I do wonder at what level this current sell off will hold, time will tell. All the best, cheers!
Comment by
freeradical1 on Mar 26, 2021 1:22pm
I am just speculating on the trading. I agree that the details of the Stamped purchase will probably drive market interest going forward. I don't expect much from the year end and Q1 core results.