Shorts24 Jan 2022 19:47
There's been a lot of posting about shorts and how they control the share price, in fact I'm probably guilty of some of those posts too. However, I'm starting to think they actually have no control and are just players in the game. I believe all the major shorters are currently sitting on big losses, so how does that demonstrate they are controlling the share? Exactly, it doesn't and demonstrates the opposite. If we take Pictet's increase on Friday, did they have insider knowledge about an impeding crash you ask? No is the answer I believe, they just gambled that as we'd hit 60p we'd drop back again. This has happened 3 or 4 times before, so they were probably just banking on it happening again. The same way a holder may have sold at 60p expecting the drop and hoping to buy in lower.
For those that are expecting the shorts to reduce to 0%, this may never happen. Between 2009 to 2014 oil was at its previous peak , yet Tullow didn't have 0% shorts during this period. So the shorters may have hedged their tullow short with another trade and be up over all on the trade or just wait it out till the next downward oil cycle. Why they never cash in when the share price got to sub 10p is beyond me though and i think shows the level of greed they have.
On a side note .... I think a lot of people need to take a look at what happened to the market today and stop making posts that this was specific to Tullow. This drop today is not unique to Tullow, nor was manufactured by some dark force working against Tullow or the shorters. It was a bad day for the markets, if you want to know why then read the articles out there explaining.
Anyway. Tomorrow is another day and we'll see if the panic continues. GLA