- "how long can the "shorters" retain their short position" -
I am no expert on this ... everything I know I learned the hard way when I held LNC stock. In a nutshell the answer is indefinitely.
Stock will have been borrowed for some fixed term but when that term expires it can be re-borrowed [rolled over]. The funds raised by shorting a stock will be redeployed somewhere else as a long position [i.e paired off]. The overall profit/loss of the combined trade will determine whether they continue the position or terminate it.
The main problem for a stock which is heavily shorted is the short seller does their best to maintain the stock in a defined trading channel as part of controlling their risk. So, typically, when a good announcement comes along the SP might initially respond positively but then along comes heavy selling driving it back down again.
AGO Price at posting:
$1.07 Sentiment: None Disclosure: Not Held
