Hi Cal,
Those shorts likely came from DS. Remember the DS cross on October 24 at $4.26? Very likely those shares were being made available to short - ie. transferring them from margin accounts to some trader's short account. As a matter of fact, after you posted about that cross on the 24th, I commented the next day that I thought those shares were coming on to the market
There is a sophisticated trader (or two) at DS who has been playing this stock all year. It's the one house other than, of course, the three amigos, that I have not been able to get a good handle on all year. They know what they are doing. Within 4 days the price re-touched $3.55 and it looks like they started to cover on the 3rd day.
It's always possible that one of the two CIBC crosses, a couple days ago, were related - they were for similar amounts. They took place at $3.81, and could have been that same trader buying those shares back (covering) through a different house by way of an internal transaction with another DMX sell order. That would be a very nice .45 share spread on 45,000 shares - $20,250.
In any case, I bet you see short reduced by that amount on the next report!
joe |
