RE: Recovery15 Aug 2019 12:01
Courtesy of Alexka1 on ADVFN
https://twitter.com/EStockpicking/status/1161362573935222784 check out this tweet and attachment, great views and opinion on NMC stock. I agree 100% with the huge short squeeze theory. Ratios are screaming out. I did some research and the ratios are tremendously high for a large cap (days to cover ratios and short interest ratios versus volumes that trades). To quote: '' Why I believe it will strongly rally - expect a ?MASSIVE SHORT SQUEEZE - NMC? Short interest is 23%? of the free float. Freefloat is 85.6mio shares, so that is 19.699mio shares that are sold short. With a volume of less than 1mio shares per day this is a ?day-to-cover ratio of >19 days.? This is without accounting for the buy-and-hold investors, that won’t sell. This is ?HUGE? by any standards and the biggest indicator of the massive short squeeze to come. Please do some research on these key ratios and examples of previous cases and you will understand why I mean. Coupled with this, insiders have been buying (CEO - He is an employee - bought over £1.8mio at 24.95 in end of May). Don't we assume that insiders know better than any outsiders or any HF based in the US of what’s going on with the company? Chairman, also an insider, just repaid over £130mio GBP of loans, and released part of his NMC pledge. Don't we assume he is comfortable with NMC and its prospects and that he has more knowledge than any outsider hedge fund? So you have a company with strong fundamentals, backed by analysts from the top banks globally, backed by its insiders (CEO, Chairman), with positive results expected and a bright outlook, that has its short interest over 23% of free float and clearly attacked by short sellers. ?This attack has accelerated prior to the results in 10 days. Clearly a panic mood and preparing a way to get out of their position. As Citi mentions In its report this week, ?''?Active shorts might be opportunistically aggressive in their selling now.’' Isn’t it a sign that this stock is maybe being pushed down for no reasons for the short sellers to create a panic and cover their shorts? All the ratios and technicals and fundamentals are screaming out to the beginning of a massive short squeeze. ?I have never seen such a high days-to-cover ratios and short interest in a large cap company. This is just waiting for a positive catalyst, which hopefully will be the results. These should trigger a spike, short covering and hopefully trigger stop losses for the late short sellers, even if in line with expectations. Thin liquidity will help in this huge spike i am forecasting. I would expect some of the shorts to start covering this week and early next week, which would support the stock ahead of the results. My target: £3000 by early end of August/Early September. ''