I'm not trying to downplay the significance of calling for certs. It is very effective if all are called. Now, the events the company has planned for the end of the month do not require us to call our certs. They will automatically be called. Nobody has to make a decision. 100% of the outstanding shares will be called into the TA even if we all just sit on our butts and do nothing. If you call for your certs now, by the time you get them, we're at the end of the month and you'll have to turn them in to the TA anyways.
If this automatic call as a result of the name change/dividend doesn't cause a squeeze, why would anyone think a voluntary call after that event will work?
TG
Think about it, just the frustration of seeing the 100% call peter out will produce selling. Besides, with the volumes we see with this stock, a significant % of the people calling for their certs at any point in time will probably sell the stock during the time period they are waiting for them.
Now, if we didn't have this automatic turn in (and forced covering) occurring in 25 days, then I would agree with you...call those certs in. But you would also have to stress to everyone...don't sell.
Now, your response will be that the shorters will probably re-short the stock after July 1. Sure, but first they have to cover the current short situation. And if this call for certs is effective, believe me, they will back off before re-shorting again. They will also not short during a runup.
To be safe, you may want to call your broker and ask for the certs after the name change. That would make sense, especially considering a big chunk of the people holding this stock will have sold into any runup. Not being cynical, just stating what typically happens. The new buyers will really be the ones calling for their certs. If the shorters re-short during that time, then that will make the next squeeze just as sweet won't it? |
