Somehow I got my numbers wrong. But the bottom line is, that between institutional holdings and insider ownership, a total of 118% of HLF shares are owned. The public probably holds at least another 5% or so shares, largely for the same reason; to make a killing on the potential short squeeze when HLF finally settles with the FTC, and they are still standing and functional. Then begins the fun!
If, as expected, HLF has grounds for a lawsuit, the Big Short will be in BIG TROUBLE!, and liable for the damage and costs HLF has sustained by the unwarranted attempt to put them out of business.
Thanks for the pat on the back. Everyone is entitled to his or her opinion. I've been here before years ago, with a short squeeze on Andrea Electronics. As I recall, it was something like a 12 bagger by the time the squeeze ended in 1999.
But this time, with about 115% or so of HLF shares in Institutional or Insider hands, it could be worse. All depends on how well the institutions are prepared to sit back and hold on to their shares. Shorts will have no choice but to cover or get annihilated when their assets are liquidated to meet skyrocketing margin calls.
Could hit close to $300 a share before the institutions star to cash out in great enough numbers to break the uptrend. All depends on how greedy they are versus how much they want to teach Mr. Short a lesson.
THAT, of course, would be the time to short the heck out of HLF, as its basic value is probably no more than $100 a share or so.
prospertex, good question. I understand that HLF is making a deal with Donald Trump to be their chief negotiator. He will take the FTC to the cleaners with a lawsuit like you've never seen before if they don't agree to a fair settlement.
Hard to believe, but both Short position and Institutional Holdings went up in latest update for May 31!
50 institutions opened NEW HLF positions to a total of 2,935 207 shares!
32 institutions sold a total of 1,735,831 shares!
NET INCREASE in institutional holdings came to 1,199,76 shares!
264 institutions owned 100,263,635 shares!
Total Short Position went up from 22,734,000 to22,816,400 shares, a gain of 80,000 shares shorted.
The shorts appear to be borrowing shares from institutions and selling them back to other institutions who are snapping up almost 3 million more shares from both shorts and other institutions.
It seems that once HLF and the FTC settle, all hell will break loose. The Institutions, plus the insiders now own some 110 million shares between them. They basically are holding a straight flush in spades, ace high.
Whoever Is short these 22.8 million shares will have only one way to cover their short positions. They will have to pay up to an organized and disciplined 264 institutional holders, likely to show little mercy.
It seems likely the HLF SP will at least TRIPLE from the current level of $60 or so,before the squeeze peters out. Once the margin calls start, the shorts will no longer have a choice. Their assets will automatically be liquidated to cover their short positions.