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Post by hellodolly on Aug 9, 2018 7:13:32 GMT -5
Seems very odd to me that if short sales outpaced buys that we would be up over 13% for the day. The short stock data does not indicate the number of short posituons that were closed out, does it? Odd yes. There was lot of shorting on the way up in October to 6 dollars. But there were days back then with high volume and low shorting back then too. Correct. CJM wouldn't you think many would be unwinding their positions here from the October run up? |
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Post by cjm18 on Aug 9, 2018 18:50:20 GMT -5
Odd yes. There was lot of shorting on the way up in October to 6 dollars. But there were days back then with high volume and low shorting back then too. Correct. CJM wouldn't you think many would be unwinding their positions here from the October run up? October was a long time ago. Maybe those already did cover. I imagine there was short covering in April After the dilution. There was a drop in daily short interest in early April. Mannkind is low on cash. Plenty of ammunition for shorts. Restructure the debt/ balance sheet or /and grow scripts. New buyers will come in. Shorts will cover then. |
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Post by traderdennis on Aug 9, 2018 19:03:31 GMT -5
CJM wouldn't you think many would be unwinding their positions here from the October run up? October was a long time ago. Maybe those already did cover. I imagine there was short covering in April After the dilution. There was a drop in daily short interest in early April. Mannkind is low on cash. Plenty of ammunition for shorts. Restructure the debt/ balance sheet or /and grow scripts. New buyers will come in. Shorts will cover then. CJM, I also believe there are a percentage of shorts who opened their position back in 2013+ that are keeping the short open to delay paying taxes. |
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Post by boca1girl on Aug 9, 2018 19:28:29 GMT -5
October was a long time ago. Maybe those already did cover. I imagine there was short covering in April After the dilution. There was a drop in daily short interest in early April. Mannkind is low on cash. Plenty of ammunition for shorts. Restructure the debt/ balance sheet or /and grow scripts. New buyers will come in. Shorts will cover then. CJM, I also believe there are a percentage of shorts who opened their position back in 2013+ that are keeping the short open to delay paying taxes. Those shorts must not have been at the retail level because the cost to borrow was up near 100% for a long while. |
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Post by traderdennis on Aug 9, 2018 19:39:37 GMT -5
CJM, I also believe there are a percentage of shorts who opened their position back in 2013+ that are keeping the short open to delay paying taxes. Those shorts must not have been at the retail level because the cost to borrow was up near 100% for a long while. Yeah I agree. Mostly hedge fund. As a short you are charged interest on the share price daily so as the price went down the interest expense also goes down. |
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Post by agedhippie on Aug 9, 2018 20:36:14 GMT -5
CJM, I also believe there are a percentage of shorts who opened their position back in 2013+ that are keeping the short open to delay paying taxes. Those shorts must not have been at the retail level because the cost to borrow was up near 100% for a long while. There is an interesting dynamic here. The large fund holders like ETFs and tracker funds are non-discretionary holders, they have to hold the stock regardless of price because it is part of a bigger mixed position. They want to loan out that stock because it's free money, they cannot sell it without breaking their tracker, and they do not care what the price is because they are being paid to maintain a close match to an index and not to pick stocks. The funds would swamp the retail short market if they put their funds out there so the only market that can absorb the sheer volume they have is the institutional shorts. These are funds that are placing pure bets (relatively rare believe it or not or we would have more days like Friday), or more commonly building composite positions based on a combination of short and long positions to play a particular event or condition in some aspect of the market. What they need is predictable costs and no unexpected loan recalls. To this end the shorts get the shares loaned to them cheaply at a fixed or near fixed rate, and the funds get a reliable cashflow. Someone is going to ask how cheap is cheap? In the case of Mannkind I have no idea, but a long time ago when I did some work in this area (I worked for a data provider) the institutions would negotiate a price for a basket of stocks representing part of their overall position. They are paranoid about people front-running orders so at our level we never knew the full make up of a position. I could go into a whole digression about front running orders, selling deal flow (most retail brokers do it), and so on but that's all wildly off topic. |
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Post by mytakeonit on Aug 10, 2018 1:26:57 GMT -5
"how cheap is cheap?" The birds say ... "We are at CHEEP!" But actually, the question is how expensive is EXPENSIVE?!!!
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