I do think there's a risk that shorts know something we don't know. Its a plausible scenario but impossible to quantify the likelihood. This is one of the 'unknown unknowns' as Rumsfeld would say
I believe however that the simplest explanation is that the shorts simply believe the SP will continue to fall further due to weakening POU and the company's debt and contractual obligations
I think it's also clear that the churning of shorts is to some extent an end in itself, designed to manipulate the price and spook holders into selling
Based on the assumption that the motivation for shorts is some combination of the second and third reasons above, the CNNC Ann will go some way to scoring off some of the shorts, but a number are likely to remain until we begin to see this long awaiting trend reversal in POU
PDN Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
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