BET Shorting

[Lattelarry]

Looks like the shorts have got their confidence back.
2 big days of shorting in a row

 

[Lattelarry]

I noticed the last week Larry that reported shorts on one of the days was over 6M…….but it did not move the graph once the T+4 was reported…….so not sure what to make of these ‘Latest Reported Shorts (Daily)’ figures.

I wondered if that was them borrowing the shares to be sold later

 

[Lattelarry]

Another 1.5M sold short yesterday

 

[fbbandco]

A company with smart operators doesn't get shorted for as long as this company........There was a clear strategy to resolve the shorting issues and AGAIN the strategy has been left wanting.........

 

[RHINO]

A company with smart operators doesn't get shorted for as long as this company........There was a clear strategy to resolve the shorting issues and AGAIN the strategy has been left wanting.........

No doubt someone will ask the question during Fridays podcast.
I for one will be very eager to listen to their reasoning behind their buyback announcement.

 

[Lattelarry]

Shorters going all out on Friday

The buy-back needs to be buying in greater quantities than the shorters are selling.

 

[RHINO]

Given the sea of red today, BET held up remarkably well with not that much turnover.
No doubt the return of buybacks certainly helped a lot!!
Well done Todd & Co

 

[Lattelarry]

Seen this the last few days…….at about 9:20am they drop 22,750 on the buy and sellers side down to about 10 price points below the top of the lists.

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They've been doing a similar thing for quite a while on PNV too - apparently started when the shorting did. They call them the bookends over there.
Do they also move up and down throughout the day? (I haven't been watching closely lately).

 

[Lattelarry]

770K short yesterday - a big number but I thought it would be higher.

 

[Ibetfixed]

770K short yesterday - a big number but I thought it would be higher.

Very generous of the shorters to hand them back to BET at these levels .. I have a new level of respect for them

 

[TeddyFiles]

Very generous of the shorters to hand them back to BET at these levels .. I have a new level of respect for them

Love it. This could get quite frustrating for them. That after all was the aim of the game.

 

[Lattelarry]

So….on the 26th Aug shorts jumped 4.4M to over 120M……..on the day of the Annual Results Presentation

Crazy amount.
Looking forward to when they buy them back

 

[Ibetfixed]

So….on the 26th Aug shorts jumped 4.4M to over 120M……..on the day of the Annual Results Presentation

I would suggest that would be straight from the shorters playbook … ie results day means sell hard into it to push the share price down which they hope the market will think the results are worse than they are .
Another example of ASX double standards though ie shorters can operate but BET has to wait until the next trading day

 

[Lattelarry]

I was interested in how often a stock doing a buy back is so heavily shorted as I would have thought it was fairly uncommon. But apparently its not. There is an interesting study about it here (which I haven't read all of yet): https://www.aeaweb.org/conference/2018/preliminary/paper/Dszzrrh3

But it did have this summary:
when short sellers and firms disagree, the firm’s information set dominates. This finding is highly robust. It holds across multiple abnormal return measures, after controlling for a host of firm characteristics related to repurchasing and short selling, in models including firm and time fixed effects, and whether we define disagreement using changes or levels in short interest.

We also find that disagreement generally carries significantly more positive information than repurchasing and short selling independently. This positive interactive effect is inconsistent with managers using repurchases to artificially inflate stock prices while short sellers increase their positions. Instead, it suggests that managers possess particularly good information about future firm performance when they repurchase against short selling.

 

[Ibetfixed]

I was interested in how often a stock doing a buy back is so heavily shorted as I would have thought it was fairly uncommon. But apparently its not. There is an interesting study about it here (which I haven't read all of yet): https://www.aeaweb.org/conference/2018/preliminary/paper/Dszzrrh3

But it did have this summary:
when short sellers and firms disagree, the firm’s information set dominates. This finding is highly robust. It holds across multiple abnormal return measures, after controlling for a host of firm characteristics related to repurchasing and short selling, in models including firm and time fixed effects, and whether we define disagreement using changes or levels in short interest.

We also find that disagreement generally carries significantly more positive information than repurchasing and short selling independently. This positive interactive effect is inconsistent with managers using repurchases to artificially inflate stock prices while short sellers increase their positions. Instead, it suggests that managers possess particularly good information about future firm performance when they repurchase against short selling.

Great post ..,it makes sense that management should have the advantage over those parties blindly shorting without any knowledge of the inner workings / prospects of the company

 

[Masteri]

Shout out to steve10 technical analysis on HC.
Have a read guys.

 

[Steve10]

Long term monthly chart indicates the bottom has passed based on stochastic RSI. Has crossed over similar to early 2019.

Also similar to June 2019 when after a 1.5 year downtrend MA's were converging. After 1 year & 4 month downtrend the 50MA is going to cross over the 100MA this week same as in June 2019 when the SP was 4.5c & went on to peak at $1.65 intraday in May 2021.

When 50MA crossed over 100MA in June 2019 the SP rallied 50% in 2 weeks & got above 200MA. SP is now 43.5c & 200MA (red line) is at 57.3c. 50MA is the yellow line & 100MA is the blue line below in daily chart. 20MA is the green line. Trend change will be confirmed when 20/50/100/200 MA's are all above each other.

When the SP peaked in May 2021 the most recent financial update was the Q3 FY21 4C with $5.2M revenue x 4 = $20.8M annual run rate.

The most recent 4C is Q4 FY22 with $26.2M revenue x 4 = $104.8M annual run rate / $20.8M = x5 revenue growth & SP about x0.25 from peak.

Time for SP to catch up over the next few years.

Can pick up trend changes on 1 minute chart before they appear on daily charts. The 20MA (green) is above 50AM (yellow) is above 100MA (blue) is above 200MA (red). Changed trend to up on 6th September at 2.30pm.

 

[Lattelarry]

It appears that the only way for BET to become the number 1 shorted stock is for the shorters to increase and for BET to buy-back enough shares and then cancel them……therefore shorts go up and SOI go down and the % shorted goes up and we take the number 1 spot from Flightcentre…..well played

Less than 1% to go, we can do it!

 

[TeddyFiles]

Less than 1% to go, we can do it!

What are the latest short figures? Does the bounce in US markets put any pressure on them to start thinking the bottom is in and maybe look at covering?

 

[Ibetfixed]

I think the bottom is in for BET…….there has been solid resistance to go lower even on the recent drops in the markets.

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I think you are right Reg …. And it certainly will be off the bottoms if BET can post their first cash flow positive quarter .

I know that growth is more important .. long term … but it is probably at the stage of an inflexion point whereby they can still growth substantially AND post cash flow positive quarters