Sotheby's (BID) has an activist investor. Dan Loeb just got them to commit to a $300M special dividend and $150M buyback. BID is somewhat related to CLCT in that they sell collectibles and art.
So two long term investors in CLCT completely sold out yesterday and I sold 1000 shares. I wonder how many other long term holders are selling. My shares were immediately picked up by a buyer in one lot. shorts must really be in a pickle
Well its reached its cup and handle target - 8 green bars on the daily - good luck to anyone who is still long, but I personally couldn't buy it here. Then again, shorts, perhaps a fund manager involved, and month end. Its pretty much gone parabolic on news which really wasn't about the dividend. I'm impressed!
505,000 shorts getting a margin call will do that!!!! It does seem extended but these low float, highly shorted stocks don't follow the usual metric.
These shorts entered in Oct/Nov 2012 at an avg of $12 or less. They have had to pay 5 dividends and will soon be on the hook for a 6th. They assumed the dividend would be cut/eliminated in 2013 because at that time in 2012, it was not known what was going to happen to the dividend tax rate and the company just announced they were having a slowdown and layoffs. Seemed like a good bet. Then PCGS announced the 20% price increase. Soon everyone was sending their coins in December to beat the price rise. Then huge modern orders came in January 2013. It was crazy.
Now the company just announced the new 3D hologram, they had a 100,000 Modern coin order from one customer, and the CEO just gave great forward guidance. If I was the hedge fund short, I would give up.