Do you think elpaso that the shorters were anticipating / hoping that the U.S. / Chinese negotiations regarding sharing data for audits of Chinese firms would fail? That would almost guarantee a sell off as the threat of delisting would become a real possibility. However, today's news is not good for the shorters:
I'm pleased to see the Reuters news agency is reporting today that such an exchange of data is now underway between the U.S. and China: "China's security watchdog said it is ready to turn over audit documents of a Chinese company listed in the United States to U.S. regulators..." This event is heralded as a "breakthrough."
Now, let's just hope for a LIWA breakout!
You've got to assume that much of the short position is a hedge of a long position, at higher prices, and they are going to sit on it. Too, just because one thinks it's time to cover does not translate to an actual holder of a short position that they should cover. The short position is only worth consideration when big movements take place, either adding or reducing significantly. Stagnant is ok here right now; LIWA certainly gives them no concern to cover given LIWA's penchant for talking only at Q releases.
On the accounting matter. I wonder if China is handing over 1 set of papers with the intent of more foot-dragging, as they can say let's continue this one firm at a time right now. Though the China team negotiation might understand the need to cut a deal, higher up political types will make the decisions.
I see the day started well here, then got squashed (again). Maybe a larger bid need to see if the sellers really want to sell....
I believe the joint inspection agreement will be the key because PCAOB supposed to be able to inspect those auditors in order for them to qualify and register under the Oxley Law. Doty already said that the working paper turning over is a positive towards their goal. Even Gillis said that he is seeing both might agree upon and announce by the end of the SED meeting.
I believe some of the shorting are for hedging purpose just like those 10,000 puts contract on Aug and November. Besides, it is not easy to cover in large chunks with so little trading lately on LIWA. This type of talks usually are for shows, most of the term has already been negotiated upon and just uses the occasion for photo shoot and to make announcement. We will find out probably by this weekend.