re: deq.un
yeah, bought some at 27.55 -somewhat of a slim return though -hopefully, it should have a quick closing.
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on a different topic, re: canadian, see the national post article below. Interesting.
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June 30, 2000
Short-sellers get ready to profit from Canadian
Peter Fitzpatrick
National Post
Somebody is finally going to make money from Canadian Airlines Corp.'s stock -- short-sellers.
Shares in the Calgary-based airline, fast disappearing down the gullet of arch-rival Air Canada, were suspended yesterday and the Toronto Stock Exchange has said the stock will be delisted once the restructuring of Canadian is complete, which is expected to happen by July 5.
Canadian stock (CA/TSE), which last traded at 63¢, has been halted since June 27, the day an Alberta court approved a restructuring plan of the carrier's debts. The shares are not expected to resume trading, said Renée Smith-Valade, a Canadian spokeswoman.
That means short-sellers -- whose position ballooned to 780,445 shares from 128,645 in the first two weeks of June -- will have to pay at most only a token amount to close their positions, making for potential gains of nearly 100% on the initial investment.
Short-selling is the practice of borrowing stock and selling it in the belief its price will fall so it can be repurchased at a cheaper price later on. If the stock goes to zero, as Canadian effectively is, it becomes the ultimate short.
"If there's a stock that's been halted or delisted for a period of time, essentially there won't be a way to close out the short position because there is no market for it. So the client will, in fact, if they shorted the stock, be able to keep the profits," said Craig Graham, an investment specialist at Charles Schwab Canada.
To close out positions, institutions will normally have a cease trade box to enable short-sellers to close out their positions for a penny or some nominal sum. It's essentially a fictitious trade to enable investors to claim capital gains or losses, said Mr. Graham. |
