RE: Shorters12 Dec 2024 13:09
Saint, I think there are several groups of people here, and its not really appropriate to call them all shorters but its the same end effect of selling shares to buy back later, lets break them down:
1, Insiders, they take part in every placing, I know a few whom ONLY do Hemo, one of them has admitted to me he only gets calls when its Hemo and he almost immediately sells before he accepts being made inside and told officially so he is always safe. But lets face it, they all sell or short, there is no enforcement here, and its a safe sell or short because whatever damage they do to the SP is calculated in to the discount so they are guaranteed a profit.
2, Not insiders but aware, Those that KNOW a placing is coming, KNOW it will be at a discount, all they have to do is sell or short and wait for the placing and buy when it hits the discount price. Very low risk.
3, Non placing related shorting, when the SP does 50% or 100% or whatever, when the volume dies down, when momentum dries up then we always see some profit taking and/or shorting. Usually it dips and they can buy back/close lower.
Number 3 is normal, we will never get rid of it, for that there will always be shorting, but number 1? The insiders? These are people who want to maintain or slightly increase their holding with minimal risk, if they are no longer inside and dont know when money is coming, personally I think they will just do nothing. Number 2? IMO thats what we have alot of right now, lots of traders/shorters who THINK they know a placing is coming, but again it only benefits them if its a discount and the placees dump. But it really does take balls of steel to do this, because the old channels of Peterhouse are gone, people literally are gambling right now and hoping I am wrong, but they are guessing/hoping/praying/gambling with cold hard cash. Yea they might continue, but their risk profile is through the roof, where as with peterhouse it was always a safe 5-10% profit rinse and repeat, no risk.