BET Shorting
- Thread starter Lattelarry
- Start date
Found on another thread they've been posting it on HC Looks like they painted themselves into a corner...'When Alexander saw the breadth of his domain, he wept for there were no more worlds to conquer...". They can't go much other place anywhere now.
In theory, the share price can go up infinitely, but in reality, a "zero" stock price is "zero" and there is a floor - but upside is unlimited.
I hope the shorters burn and fold. I will not be sad.
Just Westy
Member
Really shorts aren't a bad thing for long term holders who want to accumulate more if the company is sound but can effect companies that need a strong Mcap to fund expansion early on. It's a shit deal if your looking for a quick trade though and probably scares off the traders for that reason.
Tesla nearly got screwed by Teslaq until they got squeezed big time.
My wife has been reading these threads today and put a couple of buy orders in for Monday hopefully she'll pick up some more cheapies.
Tesla nearly got screwed by Teslaq until they got squeezed big time.
My wife has been reading these threads today and put a couple of buy orders in for Monday hopefully she'll pick up some more cheapies.
Lattelarry
Regular
So last Thursday when we got a $0.06 / 10% rise we can now see that shorters closed about 1.5M shorts. If my math is right - if they closed the remaining 116.1M shorts then it would give us a $4.64 boost! Going off $0.06 per 1.5M - leading to a price of $5.31 - we can dream!
Lattelarry
Regular
Maybe this isnt too far off then:
Lattelarry
Regular
Here's an interview with investment banker and Polynovo chairman David Williams - posting it here because they are heavily shorted too and at around the 8.25 mark he talks about the affect the shorting has had and I think we will see a similar thing happen to BET too when the shorts are squeezed. The whole thing is pretty interesting if you have time too.
Blockhead
Emerged
The single share trades are driving me nuts, how can this crap be allowed.
Cheers H
Lattelarry
Regular
Yeah I think it is an error. Polynovo is showing a similar drop and earlier in the week there was another reporting error that was corrected the next day.
Lattelarry
Regular
As suspected the shorts have popped back up so looks like it was an error
Lattelarry
Regular
I don't see how the shorters can't afford to exit (although they have surprised me before).
We are about to get new of:
1. BetR
2. 4C - hopefully very big numbers
3. FO NJ
4. Looks like Michigan is in the works for FO.
That should be enough to shake them I would hope!
We are about to get new of:
1. BetR
2. 4C - hopefully very big numbers
3. FO NJ
4. Looks like Michigan is in the works for FO.
That should be enough to shake them I would hope!
Lattelarry
Regular
I've been thinking about Macquarie's agreement with Tom and what the odds are that they just pay him out ASAP and keep the shares. They are then long 100M and can benefit from the gain the stock is hopefully about to make. Would be a bit of karma for TW giving so much fuel to the shorters and he would then miss out on much of the coming gains. I think he had 20M shares still though.
Lattelarry
Regular
Yep that all makes a lot of sense. Is the next lot of options the last he is getting?
On the one hand I would be a bit pissed missing out on the gains to come with BET but if he really did want to rebalance then selling that amount through an insto is really the only way.
Just Westy
Member
Not wanting to be argumentative but it seems that there is no way Macq can lose at this point.
If the SP goes up they hold, pay out TW and win but if it drops they cover and pocket the profit.
I'm missing something here given I always believed the risk for the shorts was a squeeze and that clause in Macq's contracts negates the possibility of them being screwed.
If the SP goes up they hold, pay out TW and win but if it drops they cover and pocket the profit.
I'm missing something here given I always believed the risk for the shorts was a squeeze and that clause in Macq's contracts negates the possibility of them being screwed.
Lattelarry
Regular
Yep agreed. I think they borrowed 100M shares but only sold 30M. They stand to lose a bit. For example if they have to pay TW back at $0.70 then anything they sold below this will be a loss. But this would be a lot less than if they had to buy on market.
This would leave them the 70M which then anything above the price they pay TW is profit, which could be quite a lot.
TW stands to miss out on a lot of profit. But as Reg said maybe he's not worried because he's made millions already from BET and doing a wholesale sale like this is the easiest way to rebalance the portfolio.
Lattelarry
Regular
Given the numbers they are hitting now he will easily bring in that much revenue. A nice 6M earner for him too.
Lattelarry
Regular
Yep and it will hopefully keep growing. I wonder what percent of the revenue is profit though??
Lattelarry
Regular
Yes one thing I noted from the last update was their good margins were improving even more. I don't understand how the shorters and fund managers don't spot these things because after the last update the SP should have taken off as BET is way undervalued.
Lattelarry
Regular
Just so much happening at the moment. US and Australia about to take off.
Huge amounts of revenue, growing quickly and with profit margins similar to the software/SaaS industry. Someone at the crapper said if this was on the Nasdaq then it would be at $10 and they are right!
Lattelarry
Regular
Feels like we are going to see all time high shorting show up in the stats next week.
Lattelarry
Regular
Slightly copying someone post over at HC PNV forum with regards to this but interesting here too:
1. I think that the vwap of this short position is c.$0.90, or likely north of that.
2. 116m shares short @ $0.90 is roughly a $104m notional exposure.
3. At the current sp of $0.62, the holders of this position have a gross profit = $32m. Though its unlikely they would clear this because covering would drive the price up.
4. The cost to carry this short is c.5%p.a = Let's say 5% (cost of funding + some margin) = 5% x $104m = $5.2m p.a, or $3m for the months since late September.
5. So, the current PnL for the shorts is roughly $32m - $3m = $29m
The big challenge for them is to cover while not blowing the SP up though.
1. I think that the vwap of this short position is c.$0.90, or likely north of that.
2. 116m shares short @ $0.90 is roughly a $104m notional exposure.
3. At the current sp of $0.62, the holders of this position have a gross profit = $32m. Though its unlikely they would clear this because covering would drive the price up.
4. The cost to carry this short is c.5%p.a = Let's say 5% (cost of funding + some margin) = 5% x $104m = $5.2m p.a, or $3m for the months since late September.
5. So, the current PnL for the shorts is roughly $32m - $3m = $29m
The big challenge for them is to cover while not blowing the SP up though.
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