Re: 32,500 forced buy-ins - Short selling and delivery failures
in response to
by
posted on
Jun 06, 2018 04:48PM
GAC, I'm finding it challenging to keep up with posts these days but there is lots of excellent thinking being expressed. Hopefully today RVX will add some new information.
I've been meaning to thank you for this detailed explanation of short selling. This is excellent and I have printed it and read it a number of times. I certainly understand the Nortel situation. AND you posted this at 2:59 a.m.!!! Wow...what a guy. :)
While it is hard for me to imagine shorting RVX at this stage because of my very biased belief in the science I can see why some would take short positions for various reasons. Factors such as
I understand why these factors could lead some to short.
It seems to me that the "shaking the tree" strategy to get some investors nervous and thus selling out at low prices also makes sense especially in an information vacuum but if I understand it the tree shakers are buying back in at the lower prices. Therefore, they are betting on the success of BoM but they want cheap shares.
If you go back to tada's post of Apr 17th, 2018 at 6:59 p.m. he's calculated that of the 175 million shares (not fully diluted) that only about 20,000,000 are truly floating/open for trading. Your June 1 post said there are about 2,000,000 shares shorted (hope I got that right). So 10% of the trading shares are short. I would not want to be a short seller.
So if I understand it correctly one strategy is betting on failure and shaking the tree is betting on success. Please straighten me out here if I am off base.
For me I'm betting positively with the science. The findings and learning have been fantastically positive IMO.
Thanks again GAC.
Toinv