Increase in shorts is only good for bulls when the stock will likely go up (in this case if WHC come out with great metrics tomorrow in their quarterly report) If numbers are not good, the bots and algorithms will be programmed to keep selling (in other words continuing to go short).and there won't be any rush to close those shorts given coking coal in all of October has been pretty much the same pattern in September quarter.
If this happens, there will be a great opportunity to trade because normally it becomes oversold and recovers somewhat
I know that WHC cut 192 jobs from Blackwater and Daunia but that only represents less 10% of the workforce. WHC welcomed 2100 employees with the B&D purchase. It was also announced in the middle of August so I don't see any savings in the September quarter.
The only division for WHC that should over achieve is the thermal operations. I'd say that it did better than the June quarter. Other than that I feel it's going to be pain for those buying in the last week or so. It could be horrific tomorrow. I just wonder if it is whether it will drag down other coal stocks. Possibly?
WHC Price at posting:
$6.40 Sentiment: Sell Disclosure: Not Held
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