In the middle of November there were supposedly approximately 17% of SGH's stock sold in a SHORT position. I say supposedly - because as you will see below - the doubt it very much the same now as it was back then.
Anyway lets just pretend that over 50million shares were actually still (Net) Short.
The share price drops from over $3 down to under $1.
If you are an institution and someone gives you up to $100 million profit in a heart beat, are you seriously holding on in hope for another $10-$20million or are you indeed BUYING to cover your SHORT position.
The same happened when the stock plumeted to $3 in the first place. Profit on the down side is profit. Quick profit as well I might add.
+200million shares exchanged hands in a matter of trading hours - Who was buying the falling knife.
In all likely hood instos ran some more shorts hard at the start and then started covering on capitulation.
Its pretty easy to cover off 50million shorts in a plunging share price when net volumes exceed 200million shares traded.
If you still think 30million shares are being held by instos or individuals who are in a NET SHORT positions (Shares bought-Shares Borrowed and SOLD in related entities) - then you had better check your medication.
I can be 1million shares SHORT at $3.25 in my Family Trust A - with my full service BROKER
I can be 3million shares LONG at $1.15 in my SMSF - with my full service BROKER
Based upon reporting requirements my full service BROKER has reported that I have borrowed and SHORTed 1million shares. Until I close that position by buying back 1million in my Family Trust A, then the daily SHORT report says my broker is still SHORT 1million shares.
Now if I want to close my SHORT position I can simply do an off market transfer between my SMSF and Family Trust A. I do not need to buy shares on market.
It is for this very reason that I maintain.
1) There are not may genuine SHORTs left in the market
2) There will be no SHORT squeeze if positive momentum is regained
So my point.
STOP TALKING ABOUT SHORT POSITIONS IN SGH
IT IS VERY VERY VERY VERY OLD NEWS.
If they every come back you will see it in VOLUME.
