Good morning to you @tutor - may I impose on your experience to offer an opinion as to the average range of 'borrowing cost %' that may have charged by various lenders in the 2018 to 2020 period for GXY shares and whether borrowing costs may increase or decrease as supply of lending stock diminishes or increases Appreciate that this is a bit of a 'how long is a piece of string' question but as I both hold and trade this stock one parameter that I like to track is an imagined and estimated (all you can do without factual reports) level of total funds expended to borrow the stock To put this in perspective - and just using very rough figures and an assumed borrow cost of 20% for easy maths
2018 Share price $4 x 20% borrow cost = 0.80 x 28M shares (7% of SOI) = $22.4M 2020 Share price $1 x 20% borrow cost = 0.20 x 80M shares (20% of SOI) = $16.0M
Is it possible that the shorters (if considered as a block) had not only managed to dramatically increase their presence but were in fact expending less funds achieving the position? Cheers
GXY Price at posting:
$1.40 Sentiment: Hold Disclosure: Held
