Just thinking out loud, follow me now, check this
Post# of 871
I’m going to use round numbers here I’d guess the interest cost for the shorts is only a couple hundred bucks a day, so a grand or 2 a week, peanuts, Things will change when they can no longer obtain shares
to short, or the entity that they have borrowed the shares from decides to no longer lend their shares, or the price goes up they will need to cover. And that is when it will get interesting. This is like bringing in your uncle who decides to by a million shares. Does he do it in 1 month at 50k shares per day or does he do it in a week, 200k shares a day, regardless when they begin trying to get the shares back the shoe will be on the other foot and it will get very interesting. Or they can get them from LPC, but the last time I looked the majority of LPC’s shares were in PP warrants which are not shares that can be sold until they exercise the warrant. So anyway I find this interesting and pleasantly surprised that an extra Million shares barely dented this.
If I get a chance it may be worth my while to throw 50k at fidelity and play the other sided of this, that is bet against the shorts and suck up the supply. If I leveraged it and honesty I could care less if I lost 50k, things could get very interesting. Next time I’m up that way I may stop in the office, they could tell me how many shares are left/available for the shorts. Hmmm I may have to think about this.
Let me see the Margin rate on 1.5 Million, carry the 1 is 300 bucks a day, 1,500 a week, dude if I only did if for 3 months, is that right only $18k? That would allow plenty of fat. K let me see 1 Million shares goes up 50 Cents for me $500k down shorts make $500k. I just don’t know if I could buy a million shares without pushing this over 2 Bucks because as I’m grabbing they’d have to cover or they’d have to borrow my shares a margin account and double down. That would be played against the odds of an announcement in the next 3 months, I’d say an 80% probability.
Does X have enough Balls? That is the question, first I’d need to sleep on it, 2nd I’d need a few hours to do the paperwork. Even if I just did a fraction of that hmmmmm.
100k
1.8 per month
50 cents is 50K
I’d have to talk to them will that open up my other accounts to the shorts or should I open up an etrade or ameritrade and just use leveraged cash. This could get fun.
Planting a few seeds for thought.
1X x 1 Short = 3 too much demand get it?
Xster Hmmmmmmmmmmm