Hi all, UBS has 35 million shares (known) from Regal which they...

Hi all,

UBS has 35 million shares (known) from Regal which they are the Prime Broker for. A Prime Broker can do whatever ever they want with the PLS shares even without Regal's consent.

Interesting to note is that the initial shorting did cause a pull back in price (see blue line (outstanding shorts) vs grey line (share price) on chart below) the subsequent shorting has just kept PLS in a very tight band of 52c to 54c.

Almost 2.5% of total shares (or 28.6 million shares) outstanding shorts as of 4 days ago (lag in chart). Most likely above 2.5% now. Most likely for one of two purposes:

1. Short to make money.

2. Holding the price in a band to accumulate for a much larger buyer (my educated opinion).

The share price has been pretty much static with many days above 40% of traded volume being a short trade.

It is dangerous being a solo short seller (even if it is just to hold the share price in a band) such as UBS as it encourages funds to come in to cause a short squeeze (eg. push share price up) as they know they only need to break one trader to reverse the position. Just like long traders short traders also have stop loss points as well.



If a poster suggests shorting has no price impact I would suggest they probably do not know what they are talking about. Facts in table and chart above.

Best Wishes,
Super Ninja