Additionally, the charts from May (we’re still waiting for updated versions), also from Buyins, show how the bulk of the short on Recon Africa came in mid-2020.
With a position this large (and the folks at Buyinssay the undisclosed short could be in the tens of millions of shares), we believe short-sellers will do absolutely anything to avoid losing multi-millions of dollars.
So how do you fight such a powerful force when regulators are incapable? Ask Gamestop.
The only thing that can hurt the short-sellers is a big buying squeeze—similar to what happened with Gamestop.
The market actually appears broken, which makes this the only recourse we see as available.
Investing has never been more of a minefield, with out-of-control hedge funds going for maximum greed and creating a very dangerous situation for the future of capital markets, especially in Canada, where every company—good and bad, legitimate and fraudulent alike—is completely vulnerable and unprotected against short sellers whom regulators are seemingly powerless to reign in.
We believe they’ve already won and the shorts aren’t covering.
They’ll lose countless millions in the end, possibly beginning next week.
The first two confirmations of an active petroleum system added to our already huge level of confidence given the big names involved on this one.
And now, in a matter of days, we expect to see more comprehensive results from the first two deep test wells ever drilled in this basin. And any day, RECO says it will launch its 450-km 2D seismic program across the Kavango Basin. Once seismic is done, we’re looking at the launch of the third and fourth drill and then it’s potential JV time—the biggest potential reward for investors and the final death of this short-selling campaign.
This could be the most aggressive and insidious short campaign against an oil company in the history of the industry … but we say it will fail and its failure has already been pre-determined.
Other companies facing off against short sellers:
Shopify /zigman2/quotes/209033712/composite SHOP +1.27% /zigman2/quotes/201409449/delayed CA:SHOP +1.25% is a surprising company on short-sellers’ lists. While it may seem overvalued at the moment, what tech stock isn’t? Shopifyis an ecommerce company geared towards small and medium-sized businesses. The company was founded in 2004 by Tobias Lütke, Daniel Weinand, and Scott Lake after the three recognized a need for simpler ways to create online stores. Shopify offers various programs that allow entrepreneurs to start their own business with ease.
In fact, because of its simple-to-use platform, it would be hard to have not stumbled onto a shop built with its technology. More than 1,000,000 businesses rely on Shopify’s real-time e-commerce solutions, including Tesla, Budweiser and Red Bull, among many others. Shopify makes purchasing goods and services easy for anyone – and in a time where convenience is king, Shopify surely has staying power.
Canada’s pot stocks have long-been a target for short sellers, especially Aphria, which after merging, is now a part of Tilray /zigman2/quotes/209129655/composite TLRY -1.44% /zigman2/quotes/226578748/delayed CA:TLRY -1.55% one of the largest marijuana stocks on the market. Largely impacted by rumors and news, Tilray is a super-volatile stock, but that doesn’t mean the short attack is reasonable.
While Tilray, and pot stocks in general, remain in a sort of gray area as some of their largest markets, there are a number of bullish factors to be considered. Legalization isn’t just a pipe-dream anymore. In fact, it’s almost a certainty. And when the floodgates finally do open, Tilray could emerge as one of the biggest winners, especially considering its high profile mergers and acquisitions in the space.
BCE Inc. /zigman2/quotes/208173581/delayed CA:BCE -0.33% is household name in Canada. For the past 25 years, BCE has been at the forefront of the environmental movement. Their environmental management system (EMS) has been certified to be ISO 14001-compliant since 2009. Throughout its push into the position of one of Canada’s top telco groups, it has bought and sold a number of different firms. BCE is currently at the forefront of the Internet of Things movement in Canada. That means it will play a vital role in building new sustainability projects and making Canada’s cities smarter and more efficient. Likewise, it will play a key role in the adoption of transportation technologies and self-driving vehicles.
That hasn’t saved it from short sellers, however. Despite its history and continued presence in the country, it remains a massive target for short sellers. In fact, as of July 15th, BCE short interest was as high as 19.61% of total traded value.
Westshore Terminals /zigman2/quotes/200149724/delayed CA:WTE -0.85% is a coal export terminal located at Roberts Bank Superport in Delta British Columbia. It is Canada's largest coal export facility, surpassing the combined coal shipments of all other terminals in Canada. The company exports thermal and metallurgical coals to markets around the world, including Japan, South Korea, China, India and Taiwan. Westshore also offers services to ship various bulk cargoes through its marine facilities. Westshore Terminals has been operating for over 30 years and employs more than 240 employees that work 24/7 shifts to ensure continuous operation. Despite its success and longevity, however, is increasingly being targeted by short sellers.
Short sellers are looking at companies like Westshore Terminals based on a simple fact: they’re in the coal business. While the fossil fuel industry isn’t quite down for the count just yet, coal is seeing a major decline that isn’t likely to slow anytime soon. And without a significant pivot, Westshore’s days could be numbered.
Great-West Lifeco (TSX:GWO ) continues to be a popular stock among short sellers on the TSX. This North American and European financial services holding company has seen its shares drop 8.9% year over year yet it still attracts interest from investors globally due to its healthy balance sheet, strong cash flows, and more.
Is the short interest justified? Their record as dividend payers is very strong: Great West has been paying out an average annualized return on investment (ROI) for stockholders since 1948 that currently sits just below 7%. It also offers a quarterly dividend yield with dividends paid every three months which equals about 6%, or more than five times what most people can expect to earn through investing in savings accounts today. This could emerge as a huge incentive to fight off the short sellers and keep the stock afloat for many loyal investors.
By. James Stafford
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Forward-Looking Statements. Statements contained in this document that are not historical facts are forward-looking statements that involve various risks and uncertainty affecting the business of Recon. All estimates and statements with respect to Recon’s operations, its plans and projections, size of potential oil reserves, comparisons to other oil producing fields, oil prices, recoverable oil, production targets, production and other operating costs and likelihood of oil recoverability are forward-looking statements under applicable securities laws and necessarily involve risks and uncertainties including, without limitation: risks associated with oil and gas exploration, including drilling and other exploration activities, timing of reports, development, exploitation and production, geological risks, marketing and transportation, availability of adequate funding, volatility of commodity prices, imprecision of reserve and resource estimates, environmental risks, competition from other producers, government regulation, dates of commencement of production and changes in the regulatory and taxation environment. Actual results may vary materially from the information provided in this document, and there is no representation that the actual results realized in the future will be the same in whole or in part as those presented herein. Other factors that could cause actual results to differ from those contained in the forward-looking statements are also set forth in filings that Recon and its technical analysts have made. We undertake no obligation, except as otherwise required by law, to update these forward-looking statements except as required by law.
Exploration for hydrocarbons is a highly speculative venture necessarily involving substantial risk. Recon's future success will depend on its ability to develop its current properties and on its ability to discover resources that are capable of commercial production. However, there is no assurance that Recon's future exploration and development efforts will result in the discovery or development of commercial accumulations of oil and natural gas. In addition, even if hydrocarbons are discovered, the costs of extracting and delivering the hydrocarbons to market and variations in the market price may render uneconomic any discovered deposit. Geological conditions are variable and unpredictable. Even if production is commenced from a well, the quantity of hydrocarbons produced inevitably will decline over time, and production may be adversely affected or may have to be terminated altogether if Recon encounters unforeseen geological conditions. Adverse climatic conditions at such properties may also hinder Recon's ability to carry on exploration or production activities continuously throughout any given year.
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