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As mentioned previously, I do not understand shorts. Is there a fixed date when shorters have to buyback the shares that they have already sold? Also I am trying to figure out how the share price will go when the UK shareholders receive their shares. To my way of thinking, shareholders might well hold for the time being whilst the share price is so depressed. Perhaps also they will buy more because of the depressed share price as I am thinking of doing but because I know so little about shorting I am so uncertain what to do. Any thoughts,please?
I'm not too knowledgeable about shorting, but I take my cue on that sort of stuff from Jimzi on stocktwits. So apparently at the minute the shorts have to close some time around end of November. They know that as the price rises any profits they have will be eroded and with shorting there is the potential for them to lose infinitely. So they continue to try to take the price down to scare those current stockholders into selling as there are very few shares available, so that they buy, return those shares and can get out, but they are struggling to do so.
Personally I put most of my money in pre-merger and have bought a bit more around the $3 mark. I will definitely be holding long term. I thought it was a bargain at around breakeven for me which is around $6 and believe this should go well into double figures. I look at many companies and this really stood out for me with the unique product, patents and large addressable markets, zero debt and backed by the US Govt. I'm feeling surprisingly confident despite the shorting.
Sometimes it's hard to see the price fall to these levels and it creates uncertainty. That's what the shorts want. I've read that investors like Buffett invest in companies as if stock market doesn't exist ie. their decision is purposefully detached from the stock price working on the principle that in the short run the market is a voting machine and in the long run it is a weighing machine. Spectral AI should already be double figures and shows so much promise to build further on that, so for me it will be a long term hold, but also feel that it won't be long before it at least doubles if not triples from here. (Hopefully in late November we'll see significant upward movement).
Ps: Vince at Spectral AI investor relations replied to my earlier question about non-delivery of shares. I informed him that AJ Bell had delivered and he thought it was odd that delivery had taken so long.
I’m not very knowledgeable about shorting either.
I don’t think its normal shorting at play here because the borrow fee is 400% I doubt they could make a profit with such a high interest rate even if the sp went really low from here.
The problem is naked shorts who don’t pay a borrow fee since they didn’t borrow the shares in the first place and can’t even locate them!
These dirty thieves seem to have many tricks and loopholes to use to keep rolling their naked position forward and would only pay a fine if the SEC bothers to investigate them.
Good article here, apologies I posted it before.
https://prospect.org/power/gamestop-mess-exposes-the-naked-short-selling-scam/
Despite this I’m still not selling. If the government is supporting MDAI and wants it to succeed surely these naked shorts have to get lost eventually.