KZL 0.00% 12.0¢ kagara ltd

some interesting facts !, page-17

  1. 1,686 Posts.
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    The people selling KZL shares are borrowing heavily to fund their shorts. My loss is limited to KZL going to 0c. I paid cash and nobody is asking me to sell my shares so theoretically I can hold them forever. Nobody can force me to give up my shares.

    However, a shorted stock can rise to infinity, opening a short seller to virtually unlimited losses. As shorted stocks are borrowed, at some point they must be bought back and returned to the original owner because every day these guys must incur interest on borrowed stock as well as lock in gains.

    I can wait for them to close. Time, zinc fundamentals and economic data is on my side - it is not on theirs - and I won't be selling under any circumstances. Except of course circa 2015.

 
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Currently unlisted public company.

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