Riz, thanks for everything you and the other moder
Post# of 150676
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Posted On: 02/26/2025 4:43:05 PM
Riz, thanks for everything you and the other moderators do to keep this board sane.
Those who have been around a bit know I am a long-time long (2017). I was here on June 30, 2020, I know this stock is and has been manipulated!
That said, I want to add a bit of clarifying information to the short sale information for CYDY. It's been said before in the distant past but I thought reposting now made sense for the benefit of newer investors.
A significant number of shares of CYDY are held by investors who invested through Paulson (broker). In many instances, the only way for those investors to sell that stock is through a fairly complex transaction that, while reported as a short sale, is not a true "short sale" in the spirit of an investor betting on a price decline in the stock and being required to cover later.
Many of those Paulson investors have significant exposure to the stock and a basis at .10 or even lower (under .08 for the recent warrant inducement offering with bonus shares, July 2024). The Paulson investors also typically have warrant exposure that allows them to sell shares and still maintain exposure to the upside of the stock.
Even if you are a HUGE believer in CYDY (I am!!), depending on individual and life circumstances, it may be rational for those Paulson investors to reduce some of their position along the way.
These Paulson sales are REPORTED as short, but they aren't short in spirit. Just company believers with large share totals and remaining warrant exposure taking some marginal exposure off the table.
All that said, the point, for the benefit of newer investors, is it can be difficult to look at reported short sale data and determine just how many of those "short" sales are Paulson investors selling to take a gain and how many are true "short" sales trying to tank the price. IF the former shares weren't held through Paulson and required to be sold in their unusual manner, they wouldn't be reported as short.
FWIW, two big blocks of Paulson shares will go long-term capital gain in March and July. Those blocks have stock basis of .13 and approx. .08 (all of this is public info available in SEC Filings). I'd expect some selling pressure at those times from Paulson investors taking shares off the table at LTCG rates.
Source: I am a Paulson investor that recently reduced my position by less than 10% in order to cash out some stock from a prior Paulson deal (basis .255, LTCG eligible), pay minimal taxes and pay off some life debts. It happens!
Sorry for the long post, but we're all better investors with more information.
If you've read this far, you know I close my posts:
GLTAL!!
Those who have been around a bit know I am a long-time long (2017). I was here on June 30, 2020, I know this stock is and has been manipulated!
That said, I want to add a bit of clarifying information to the short sale information for CYDY. It's been said before in the distant past but I thought reposting now made sense for the benefit of newer investors.
A significant number of shares of CYDY are held by investors who invested through Paulson (broker). In many instances, the only way for those investors to sell that stock is through a fairly complex transaction that, while reported as a short sale, is not a true "short sale" in the spirit of an investor betting on a price decline in the stock and being required to cover later.
Many of those Paulson investors have significant exposure to the stock and a basis at .10 or even lower (under .08 for the recent warrant inducement offering with bonus shares, July 2024). The Paulson investors also typically have warrant exposure that allows them to sell shares and still maintain exposure to the upside of the stock.
Even if you are a HUGE believer in CYDY (I am!!), depending on individual and life circumstances, it may be rational for those Paulson investors to reduce some of their position along the way.
These Paulson sales are REPORTED as short, but they aren't short in spirit. Just company believers with large share totals and remaining warrant exposure taking some marginal exposure off the table.
All that said, the point, for the benefit of newer investors, is it can be difficult to look at reported short sale data and determine just how many of those "short" sales are Paulson investors selling to take a gain and how many are true "short" sales trying to tank the price. IF the former shares weren't held through Paulson and required to be sold in their unusual manner, they wouldn't be reported as short.
FWIW, two big blocks of Paulson shares will go long-term capital gain in March and July. Those blocks have stock basis of .13 and approx. .08 (all of this is public info available in SEC Filings). I'd expect some selling pressure at those times from Paulson investors taking shares off the table at LTCG rates.
Source: I am a Paulson investor that recently reduced my position by less than 10% in order to cash out some stock from a prior Paulson deal (basis .255, LTCG eligible), pay minimal taxes and pay off some life debts. It happens!
Sorry for the long post, but we're all better investors with more information.
If you've read this far, you know I close my posts:
GLTAL!!
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