- This topic has 2 replies, 2 voices, and was last updated 8 months, 1 week ago by Michael Delorme.
October 29, 2019 at 9:41 am #3313Abe GuentherParticipant
I have a question about the recent massive short position taken by an unknown person or group:
On October 21st there was a 126% increase in short positions. The highest single day increase since early June as you can see in the attached table.
Here is the math for the short seller’s profit:
$882,173.40 Price at 0.60 on October 21st
$352,869.36 Price at 0.24 on October 28th
$529,304.04 In 7 days, the short seller made this if he covers today at 0.24 just for having insider knowledge of the news beforehand
My main question is, how could a short seller have such confidence in taking this position without insider knowledge of some upcoming bad news? You and I were not privileged with the the Rights Offering announcement before October 24th. So, how could this short seller have known?
The presentation posted on the site was good. So no one can convince me that there was any information in that presentation that could motivate such an aggressive short position!
Here is the October 21st presentation. Please show me where the bad news is: https://www.zenabis.com/docs/zenabis-presentation.pdf
I emailed this question to their investor email address with all the above information and I have not received a reply. I did not accuse them directly for leaking the information. I simply asked them to help me understand how this could have happened without some sort of leak. I have not received a reply. Because, I too would like advanced knowledge so I can make 250% profit.
If this is what actually happened, they cannot do that under their own name or get caught doing it because it is highly illegal. Not to mention immoral and unethical. The new CEO would know exactly how to do it under the radar if it were him. I am not implying it was, I am simply stating an obvious and logical fact.
Nothing new though if he did since this has been happening across the sector. So if it was him and he eventually got caught, he would be in good company and very well insulated.
All I want to know is how could anyone be so confident to take such an aggressive position at a time when the stock was already beat down and there was pretty much no real bad news. Plus the whole sector seems to be changing from the steady down trend. Plus there was a very good presentation posted on the same day. It is just suspicious and it 1000% has to be that there was insider knowledge leaked before the Rights Offer news to intentionally profit from the unsuspecting investors.
I want to report my suspicion to the BCSEC but at the same time I want the company to succeed and not lose any more of my investment.
October 29, 2019 at 10:08 am #3315steveGuest
I am totally with you!
And I am “nearly” convinced that in this dirty cana stocks lots of insiders let their own companies get shorted.
Hey. So the make money twice.
But I have no evidence:-) If you understand what I mean.
October 29, 2019 at 6:20 pm #3317Michael DelormeGuest
Money breed’s greed, there are some serious changes required in the stock market in order for us little investors who take a risk with our financial future and pensions etc to not get fleeced out of our hard earned cash.