I get the general gist of the whole shorting thing but am definitely no expert. I obviously didn't initially read the announcement very carefully as I didn't realise that that they hadn't bought the shares (rather simply borrowed them) till I read this thread.
I would think the only reason they would "borrow shares" is to sell them on market then hopefully buy them back again later at a cheaper price (shorting).
I think the fundamentals of this company are very strong so it would seem like a risky move, however I think, if in fact they are thinking of shorting (just guessing here), maybe they might feel that if the convertible bonds are converted later this month this might lead to a lot of selling which will force the price down. I also think this may be the rationale for the share buyback (to soak up some of those shares to try and limit the impact on ordinary shareholders).
Again all just a theory, and before anyone gets on my case for not holding any stock and "down ramping", I was holding stock till today and am definitely not downramping. I believe the fundamentals of this company make it a screaming buy, just might wait till the motives of BOA and the impact of the bond conversions (if they happen) are a bit clearer till I get back in. May turn out to be a bad move but guess I'll only know in hindsight.
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73.5¢ |
Change
0.020(2.80%) |
Mkt cap ! $1.564B |
Open | High | Low | Value | Volume |
72.0¢ | 74.0¢ | 72.0¢ | $6.861M | 9.349M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
9 | 466482 | 73.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
74.0¢ | 314277 | 13 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
7 | 457999 | 0.730 |
1 | 28455 | 0.725 |
4 | 73400 | 0.720 |
5 | 39211 | 0.715 |
2 | 39270 | 0.710 |
Price($) | Vol. | No. |
---|---|---|
0.740 | 92802 | 6 |
0.745 | 98222 | 6 |
0.750 | 145978 | 11 |
0.755 | 118882 | 5 |
0.760 | 497913 | 6 |
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