AUM australian mining investments limited

if you made a mill in a week what would you do, page-56

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    re: good shorting opportunity IMO, you would have to be an extremely huigh risk investor to short this one given what eventuated in the morning before the trading halt. A short squeeze is a great way to lose a lot of money extremely fast:

    The Short Squeeze:

    A situation in which a lack of supply and an excess demand for a traded stock forces the price upward.

    If a stock starts to rise rapidly, the trend may continue to escalate because the short sellers will likely want out. For example, say a stock rises 50% in one day, those with short positions may be forced to liquidate and cover their position by purchasing the stock. If enough short sellers buy back the stock, the price is pushed even higher.

    If a stock starts to rise and a large number of short sellers try to cover their positions at the same time, it can quickly drive up the price even further. This phenomenon is known as a "short squeeze." Usually, news in the market will trigger a short squeeze, but sometimes traders who notice a large number of shorts in a stock will attempt to induce one. This is why it's not a good idea to short a stock with high short interest.

    http://www.investopedia.com/terms/s/shortsqueeze.asp

 
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