Completely agree with this Astoria. The more I think about the huge short position on myr, the more I am comfortable that there is a catalyst for a huge share price spike at any time. Imagine for example there was a takeover offer at $1.60, the price would very quickly rise to that level. Then very quickly the lent out stock would probably get called in. It would then have to be bought on market at any price, it could quickly skyrocket with over 100m shares to be bought, plus speculative traders would get in on the action.
While I wait for a catalyst am happy to be getting at least 7%+ in dividends (assuming a small drop in the dividend). Which the shorters will be having to fork out twice a year. At $3 this was probably a decent shorting opportunity but at these levels (below book value) dividends will eat into the shorters profits, and there is potential for a short squeeze at any time which would make their profits evaporate. Some of the shorts were probably done more recently as well, seems crazy to me, maybe they know something we don't.
MYR Price at posting:
$1.38 Sentiment: Buy Disclosure: Held
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