An 18% premium to short. It'll eat up any meager gains that any short can get at this present price. Not enough shares available to borrow to legally short much further down
Like Apple's Cook, he doesn't want to reveal too many secrets. I hope that some of you got some AAPL today. 38% earnings increase YOY. PE less than 15X this year's earnings. $200B in cash/investments. As Carl would say, it's still cheap and a no brainer. Apple being down is hilarious. But it did keep the DOW below 18K.
Carl made available 10M shares to borrow. You can borrow them if you want at 18%. But that looks short of the shares that were naked short yesterday. Tomorrow and Friday should be two different days.
Fact. Shorts are covering shares at this moment and the price will continue up from here today. Lots of naked shorting yesterday. They have just started to cover them and will do even more tomorrow.
You shorts are already hooked. It's time to invite the neighbors to the big fish fry. It should be tasty too.
We can only hope. The lower it goes the higher it will ultimately go. It will cause more demand for oil products and less glut. Plus you will see more cut backs in rig count which means less future production. That equals much higher prices even sooner.
If Pickens is right. And I do believe that he is right about $70 oil by year end.
4) Chesapeake Energy (CHK) – Billionaire investor Carl Icahn owns 11% of CHK and recently added to his position around $13. Chesapeake announced today that they halted their dividend which is bullish for the stock. The last time oil was $70, Chesapeake was $25. That would be a 147% return from its price today.
Unsurprisingly, given the oil price/energy stock performance divergence, energy stocks are among the most heavily shorted. The divergence implies perhaps the shorts have gotten too greedy (staying too long and hammering too hard). If they are wrong about the trajectory of oil, and Pickens is right, we could see a huge short squeeze in energy stocks.
Shorts are in deep deep trouble even without good news. They really don't understand even Cramer's rules for shorting. The one that says never short something that's heavily shorted. You can't get out without damage. Try borrowing shares in the next few days. If you can find them, you would have to pay wayyyy north of the present premium of 18%. The price of shorting is going up and shorts profits are melting away. No need for good news, shorts made their own bad news.
Shorts borrowing premium of 18% shows how hard it is to borrow. That premium will only go up even if you find some to borrow. I wouldn't be the last one to cover your short. You can play with the price today, but who's the fool who will sell to you when there's too few shares to borrow? See you on day three when you have to deliver.
Bears can't stand it over 18K but can't do much about it. Using Apple today to do the trick. Good time to buy Apple.
What the hell happened here. I didn't restate what I said before. I said that their borrowed shares were charged 1% at the beginning of July. Last week it went to 18%. That's why they naked short yesterday and have to cover or pay even more than 18%. They have to cover those naked shorts this week. And more if they were smart.
That's why there was a massive naked shorting yesterday. They'll have to cover or find borrowed shares. Day one of covering.