The higher the cumulative short positions the more price leverage to push it lower. GXL is being heavily shorted according to short man at the moment. 6.89% at 21st March , early February it was at 10.76% . Where will the share price land. There is a view that $5 will be tested. Let’s see. It’s a market so buying pressure could cause the shorts to loose.
My question always is what is the shorts strategy.
A view on the price forward for a spread profit or forcing another play, take over or breakup ? Look back to the TPG offer. That came after an aggressive short play on GXL.
Probably a really good time to buy and hold.
GXL Price at posting:
$5.26 Sentiment: Buy Disclosure: Held
