The perfect storm.
Two news releases the same morning before opening.
PEA release - better than expected.
Buyout offer of over $15 per share.
Maybe I should have a GTC in at $20.
It won't last forever shorty..
The new SEC chairman is out to make this a honest market and undo the harm done by allowing
unchecked shorting by the elimination of the uptick rule under Christopher Cox 2007.
Un-checked shorting causes forced selling.
Forced selling is extortion.
Extortion is illegal and should be equally illegal in the securities markets.
A company's stock is it's legal currency and should be protected as any national currency.
Rule 1 No shorting below the prior day's close.
Rule 2 Same day settlement.
It is well debated and documented about the ethics of short selling. It is supposed to pick out the troubled companies. In reality, it has been terribly misused. Selling stocks that they don't actually own, it gives the seller unlimited money power in some situations. The shorts even fabricate negative news about perfectly healthy companies/stocks to just beat them down and reap profits from panicked/misinformed shareholders. MUX and PZG are two just two such examples.
The short interest was down a bit for PZG this month but still close to 10% of total shares and 26 days to cover. Even if the volume picks up dramatically, it will still take a few days for the shorts to cover. The potential squeeze might be significant.