I believe it is mostly to hedge a long position and lock in a price. Have seen others discuss this type of play before.
Imagine you are holding a major long position in the URA fund and did not want to sell that position. You could hold short positions in stocks like URZ, URG, URRE, and others to protect your long position. If the URA fund goes lower, they are able to stay pretty even with their hedges in the specific stocks. Once URA recovers and outlook on overall sector "really" improves, the hedge is covered to a degree allowing the benefit of the rise of URA.
In other words, while there has been continued stress on the sector, the shorting of certain stocks has been used as a hedge to try to stay even until things recover.
Imagine you own a stock at $30 and are restricted from selling or are unable to sell because of all the shares you have and cannot sell easily on open market without causing a major drop in PPS. Let's say you know that the company is under stress due to whatever issues (sector, economic, company specific.) If you short against your position, you are effectively locking in those shares at $30 even though the PPS drops to $20. I am willing to bet that most of the short position on URZ is a hedge. Important: This becomes more obvious as time goes on when you notice the short count really does not change regardless of PPS movement.
Amazing. Looks like it is going to run and it gets slammed back down. Crazy.
Wild to see these intraday swings on this stock now. Some serious manipulation going on here. Very unusual for a stock of this caliber.
I have not been watching, but pay attention to the volume. See if the heavy volume is coming on the sell side. If so, PQ may be ready to fall much lower and insiders (those in the know) are propping up PPS trying to dump out. Let me know if anyone finds anything by studying the volume. Could be a major sell signal.
TNA - have a strange feeling that selling above $4.20 today may have been a smart move. Of course, volume on buy or sell side may tell a better story from past few weeks. Just getting a sense that something is wrong.
Could it be that there are debt restructuring concerns? I have wondered about that for some time - and you do not want to be holding when the shorts take hold of the stock on debt concerns if word gets out that they may be having trouble getting the debt extended. Good luck.
Yes, I bit my tongue for a long time figuring it was easier to just keep peace on the board than to stir things up.
And, Opti, I did do very well with DXM. I did have to ride out some bad times when I got holding too high. Sold for a big loss at one point on way down, but rebought those shares much lower. My basis was very low when Dexo/Dxm shot up so high. Just wish I sold it all above $20 instead of waiting until that dreary Q2 report. Thank goodness I sold immediately on the news and did not ride it all the way back down.
Bob - the person that started this thread is an imposter and likely the Stillpursueing that said this stock was going to $100 and said that he had boatloads of shares.
Ever since this stock dropped so far back down, he disappeared except for his occassional alias. He is copying my name by changing the ending of the name.
Well guys, it is definitely Stillpursuing with his many multiple IDs. Look at the 11 (at the time) thumbs down. Stillpursuing logged in under many of his IDs to thumbs down my statement above. Notice he did not come here under his real name and state that it was not him.
Look below - he created another ID just to respond to me. Too funny!
I totally agree. Seems like there were sellers at the $1.17 area which made me wonder if it was some of the investors that also received warrants. Sell the shares for break even and keep the "free" warrants.
And, yes, a dip down to a little below $1.10 will strike my interest to add even more.
Notice CCJ broke through $21. Would love to see it run to $23 and break through to new highs. Like I said in another thread, this will be a clear indicator of money running back into sector and URZ, URG, UEC, DNN, UUUU, will follow. URRE, maybe not so much. That one is a big loser.
It has been taking longer than I expected, but PPS is now back under $3. Still stand by my belief that $2.50 area is coming soon.
Somebody copied my ID using a different ending on the name. There are three choices with yahoo allowing what looks like exact copies. Please put the poster on ignore.
I still have all my URZ shares and have no interest in starting a position with DXM again.
Strong move by CCJ today nearing the close. Really, really need to break through $21. BTW, hitting $23 would set new 52 week high for CCJ.
It is only a matter of time. :-)
You got 4 thumbs down??? I was just dealing with this Obamacrap today. I can keep my old policy that goes up to $500/mo for the family (for one more year with no changes allowed) or switch to the cheapest Obama policy at over $800/mo.
So, in one more year, I will be forking out over $10k a year for healthcare that provides less than I have now. Not going to do it. Will drop coverage completely and put that $10k in a bank account. Eff Obama and his plan.
Well, CCJ is working its way back up to $21 again. If it can break through, we may get a chance to test major resistance right around $23 per share. For those, looking for the correct time to enter the sector, I believe that CCJ breaking through $23 will be a major indicator that Uranium mining stocks are headed much higher.
Look at multi-year chart for CCJ. The path beyond $23 looks to take PPS back up to much higher prices and it will take some kind of catalyst to do so. This would surely correspond with impressive move in spot prices or at least major sentiment change in sector by analysts that bring money back into these stocks.
Where is URZ when CCJ breaks through $23? I would anticipate new 52 week highs, especially as CCJ breaks above $25. URZ could move up to test $1.80-2.00.
Still, here we sit in a new trading range between $1.10-1.20 which is still significantly under what I would call fair value based on the receipt of the state bonds, imminent start of production, and what appears to be the beginning of the recovery in the sector.
Based on total shares outstanding, the short interest is very small. Likely, a large portion of the short interest is a hedge anyway and will not need to be covered to any major degree with PPS moving up. Actually, if PPS moved up quite a bit, I would actually expect short interest to increase.
So, IMO, there will not be any short squeeze coming with URG and any upward movement will be based on positive fundamentals related to increased output and recovery in Uranium prices both short-term and long-term.
If you can make 1% a day (after commissions) with about 250 trading days, you will realize annual returns of well over 250%! Too bad it is not as easy as it sounds. You can easily hit 1% for five days in a row. Then, one bad day can kill all those gains.
Buy low. Sell high. :-)
I also believe that there are three main sources of money still to come to WMI-LT.
1. Funds getting freed up from reserves held for employee claims.
2. Funds from tax refunds still to be determined.
3. D&O insurance claims.
This does not include the RON that is already there, just not in cash form. As far as I can tell, there is no other magical money coming into the trust.
It appears that if things go slightly right, Piers will get paid in full and Class 18 will fight over what is left. I just do not see any money reaching equity at all. WMI-LT will close the books by working up some fair deal to distribute remaining funds to Class 18 once above 1-3 are resolved.
No pot of gold for old WAMU shareholders from WMI-LT. :-(
Still waiting for Class 16 Piers to even see one dime. Then, there is class 18 to ask for any scraps if and when Piers are paid in full. No money for equity from the trust.
I already tried to explain to Boardfolks that the WMI-LT is actually starting the winding down process. Freeing up funds from litigation fund, paying off small Class 16+ claims, and then distributing the RONs are all strong signs that the process is happening.
No pot of gold for old WAMU shareholders from WMI-LT.
I was thinking sometime in mid January myself. Thought originally that they may get started by end of this year, but based on timing of things, I pushed my guestimate back a little.
Getting the capital from the bonds was a big thing.
My opinion on a Cameco buyout is that it is very possibly in the cards. However, from Cameco's perspective, they must assess risk and I am sure they will be willing to pay more based on a much lower risk scenario once URZ has operations that are creating real income. Of course, the protection implemented by URZ from a takeover is another strong reason that Cameco will wait for a more fair outcome for all. What shareholder would want to sell at $1.50 when stock was at $0.90? Whereas, a stockholder is much more likely to sell at $3 when the current PPS is at $1.80 considering their cost basis.
Opti - Did not see your original post. I actually had you on ignore and only happened upon this post because I checked the message board from my phone while not logged into Yahoo. To be honest, I never saw you provide anything of substance which is why I had you on ignore.
Well, I did take you off ignore to respond and say that if you are willing to provide your thoughts about certain stocks, I am sure willing to listen. As you know by now, I am always cautiously optimistic and assess risk which is why I ultimately turned negative on DXM.
I will take a look at ZGNX. Did notice it moved above the recent high set on some type of FDA approval and chart appears to be looking very strong.