energyplay, BPZ Energy (BZP) -- thanks for educating me, I have been mis-using the term "naked short selling". I guess I should be calling it "uncovered short selling" or something like that.
Given that BPZ shares are not marginable in some accounts I wonder how many shares are actually available for borrowing.
The only thing I can think of for the bear case on BPZ is that someone believes they don't really have much oil on their hands, notwhithstanding the way the 21XD test came out. One of their predecessors on this license tested a well at 4K bopd, at Albacora, and that pool dried up pretty fast. But I believe its being overly simplistic to assume that BPZ's oil pool at Corvina is going to end up looking the same as the one initially discovered at Albacora.
I'm not sure whether this is just a "hit and run" type play by the shorts or a long-term investment. If its the former, the idea would be to keep shorting up to the point of getting news on the 14D well, and then cover, before the news actually gets announced. If the latter, then keep the position open through 14D well testing news, under the belief that it won't test much if any oil. Needless to say, in either case I believe they would be playing with fire.
Bottom line is, as they say, this is what makes markets, may the best man win. |
