If Apollo, or someone else, were to short 5 million shares (over 5% of the stock) as suggested earlier, I believe they would have to file a 13D with the SEC. Either they haven't shorted this much or they are breaking the law. IMO. Anybody know if I am ccorrect in this?
Reason #2 why the Apollo is a short conspiracy theory is wrong: Apollo has secured debt.. It's secured by assets of Mill. There is really no need to hedge this kind of debt since they take the assets if Mill defaults.
The fact that the short did not cover when the stocked dipped into the 2's previously and then again into the mid 3''s indicates to me that they are using it as a hedge. If, for profit, then they would have cashed out and walked are previous opportunities. Apollo keeps coming into mind since it covers a chunk of their 18% loan plus gives them all of the assets in case of failure. The question is where are they getting the shares to short? I have been told by my broker that since my shares are in a cash account that they would not be available for shorting.
"The question is where are they getting the shares to short?" It won´t like you. Shares come from insiders, Their long position was shorted when pps was at 8$ level, and they will cover with the pile of warrants to be exercised in coming years. It is cheaper than your 2$ mark. There is no way of collect 10MM shares to be shorted, even with all institutions lending their shares.
If you manage $100M or more in a fund, registered or unregistered, you have to file a 13D. There is no requirement to disclose any information about your shorts. Don't know why that is, but those are the rules.