RE: shorting27 Jul 2022 14:10
I wouldn't worry about it. With 150M shares in free float, there will always be someone willing to rent them out, as they will also get a return. Knowing what you own, and the reasons you hold are key. Not being scared when the price drops, but actually being excited to be able to buy more. Always retain capital, for these events. Shorting can be a real gift if you get it right. Most shorted stocks should be avoided, but if you can figure out all the reasons why the short is happening, sometimes it will just be opportunistic as in this case. Shorting BEN at 90p would be because it was over priced, but at 40p its just off the back of the volatility and mainly held by retail investors, many who are new holders who will have no idea about the business case, and were just hoping for a bounce to 60p in a week, who will give up with no fight.
I also bought a lot of GGP at 12p, 11p, 10p, 9.6p. Now in nice profit with that - 40% up in about a week, only possible because JPM shorted the stock. At 10p, seriously, what was the downside! Same with BEN, 130M mcap today, I bet the NAV is worth more than that. A little over 3x the IPO price, but look what has been achieved in that time.
The short could play out for the rest of the week IMO, I wouldn't be expecting a rapid re-rate. But if we can establish the bottom, then over the next few weeks, buyers will come back, still possible to 100% gain this year