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$2.40 weebit nano ltd

You do realise shorters aren't right any more than long...

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TheAnalyst007

15,740 Posts.

4048

04/10/23

13:48

Post #: 70168829
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Originally posted by Gibson68: ↑

But this makes no sense.

"At some point in the future I will get the shares back." - Yes you will, but now the market value is say half the value of what it was when you lent them. Your 1 million shares were worth say $6m at $6.00 per share. If the shorter closes their position today and gives you your shares back, your investment is worth $3m and you have lost $3m on paper.

As the original owner I don't care if borrower makes or loses money, I pick up interest on the shares lent. Yes you have picked up interest - let's say you earned 20% interest per annum (I have no idea what the rate is but that seems high enough). In the last 2 months, on your $6m you have earned roughly $200k in interest, so you are up $200k on interest, but down $3m on your investment's market value, a net loss of $2.8m.

There must be something I am not understanding about why these shares are being lent to shorters.

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You do realise shorters aren't right any more than long investors are? They have no real impact on the share price, they're merely riding the downs. Makes a lot of sense to lend therefore as long investors can make money from interest regardless of what the share price is doing

WBT Price at posting: $2.98 Sentiment: Buy Disclosure: Held
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Last $2.40		Change -0.120(4.76%)		Mkt cap ! $453.3M

Open	High	Low	Value	Volume
$2.52	$2.52	$2.40	$988.7K	404.8K

Buyers (Bids)

No.	Vol.	Price($)
10	27149	$2.40

Sellers (Offers)

Price($)	Vol.	No.
$2.44	5692	1

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No.	Vol.	Price($)
10	27149	2.400
2	12274	2.390
1	2800	2.380
3	506	2.360
3	11063	2.350

Price($)	Vol.	No.
2.440	5692	1
2.450	2000	1
2.470	4000	1
2.490	8324	2
2.500	19500	2

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