Guys,
just wondering what the drop in average daily volumes recently (where - excluding last thursdays big day - averaging only ~4m shares turnover a day) means for the 12.1% (42.7m shares) of shorted stock?
If the 24th Aug profit announcement saw no adjustments to Fy15 results then how would/could the shorters buy back 43m shares in one or two days? It just isn't possible unless they were bidding the price up to $5-$7 a share to attract 10 days of volume in just one day?
Would they be more likely to close their short positions in the lead-up to the 24th - thereby supporting the share price - or do you think these shorters have iron gonads and will hold their short positions up to the 24th?
I admit it is a 50:50 call on whether the Quindell issue will have an impact on the results, but it seems to me that these shorters are exposing themselves to an ever-increasing risk of a squeeze given the high % of shorted shares and the decreasing average daily volumes. There are only 8 business days after today before the 24th.
Thoughts?
SGH Price at posting:
$3.34 Sentiment: Hold Disclosure: Held
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