There's roughly 30 million + short sold shares of BDR has to be bought back from the market.
Does anyone realizes where these short sold shares will come from, (It has to be bought back from ordinary retail investors higher or lower.) Think about it.
Imagine the shorters have to buy back the 30 mil + shares in a hurry.....the share price will not be 15-20 c.
Way higher.....As the shorts start to cover the sellers will start pulling off their sell order faster....30 million shares cannot be bought back in few days....its a lot of shares.....it might take weeks...or months.
A month or two ago heavy shorting started in anticipation of capital raise and the likelihood of interest rate rise from the US Fed. Both didn't happen. I said before that the capital raise was out of question (specially at 11 c level) but the US FED will be forced to raise interest rates later on......albeit a token hike. The world economy cannot handle higher interest rates. The US Fed is in a very difficult situation...Yes they would like to raise interest rates ..that's the sign of a healthy economy. They can't raise interest rates because deep down they know the economy is very fragile. But the markets will force them to raise interest rates at some point in the future.
The FED is looking at the markets and the markets are looking at the FED.( A dog chasing its tail)
Anyway the shorts will make every effort to manage the share price. They did tried this morning...but failed. You see they can't win all the time...the overall market is bigger than anyone. When the whole market realizes what a wonderful opportunity BDR is at this level...(Shorts will have a difficult time)
Also another point as the share price marches higher ...this heavy shorting will evaporate...as its start costing more to short.....so the share price starts rising...that attracts new investors...more and more will jump over board....the shorters will be overwhelmed. They will eventually give up.
They are only here to make money from you and me.( Ordinary Retail Investors)
What do they care if BDR produced 30k or 40K/quarter
What do they care if BDR AISC is US $750 or $850
What do they care if BDR generates profit and announces a dividend.
Nothing!!!!!!!
All they care is how much are the shareholders worried...the more the shareholders worried the easier for them to make money.
No doubt, BDR had production problems...we should be only worried if the management did nothing to fix it. I believe they are doing everything to fix the production issues. In fact they might have recognized the problems and the results will show up in the upcoming few quarters.Could BDR problems be avoided with better management...I don't know about that, but they acted to fix the problem...appointed MACA ....hiring extra heavy equipments. That's the main thing. I like to present a metaphor...say the house you live in is under renovation and you can't live there while the renovations are happening. Does that mean the house is worthless. Of course not, in fact the house will be worth more after the renovation.
BDR will be worth way more after all the problem fixing.
BDR Price at posting:
15.5¢ Sentiment: Buy Disclosure: Held