World Quant - Ugly World of Shorting27 Apr 2021 11:46
Not sure how anyone else is getting on regarding research of World Quant and their disgusting shorting practices but from my own research it looks very much like that .80% Short is still in play!!!
So what do we know:-
https://www.shortics.com/novacyt
Short was increased 21st April 2021 - They are currently short 560,000 Shares !!!! - These shares ultimately need to be brought back.
The SP last Wednesday was around 4.10 and intra day not sure, think we may have seen 4.30 Top side? So lets assume best case for them Short at 4.30
Lets also assume that this was a build on following a big short the morning of the crash at 6.75p
I THINK the short was .67% prior to the increase.
So Quick Maths:-
469,000 Short at 6.75 = £ 3,165,750
91,000 short at 4.30 = £ 391,300
Short Average = £ 3,557,050 = £ 6.35
So they have three choices:-
• Get greedy and short some more in the HOPE of SH panicking and selling, always a possibility, lets face it most Shorter’s are arrogant.
• Buy the position back now at £ 5.72 if lucky and still make a reasonable profit by my calculations circa £ 353,850 profit or 10% - you can see why they try it on.
• Sit back and watch the profit vanish as SH continue to pile in with trades overlapping and end up buying the position back at a thumping loss.
I know the option I would take if I was them…
Good Luck All
Pork’s