But there is still 7.5% shorted. So the shorters A who sold at $0.50 get cover at $0.40 buying from shorter B. So shorter A has a profit 10c. And shorter B only needs to buy at $0.40 to be even.
So say the price falls to $0.30. At $0.30 the number of shares holders are willing to sell is reduced and the number of investors wanting BRN increases.
Of course clever investors are not going to buy while the price is falling, but on a positive price signal they will jump in. At this stage the shorters will need to compete with other investors to buy shares.
Just like how the price of BRN has been forced down by shorters buying and selling from eaxh other on the way back up they will have to compete to .get cover. A relatively small price rise will put some shorters into a loss making position.
So shorters are relying on buying shares from people who have not sold on the way down. I know some people are into buying high and selling low, but seriously is that 7% of BRN's shareholders.
i am watching with interest to see how this is resolved.
BRN Price at posting:
32.0¢ Sentiment: Buy Disclosure: Held
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