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Gold/Mining/Energy : Day trading in Canada -- Ignore unavailable to you. Want to Upgrade?

To: Wayne K who wrote (3798)	2/13/2000 12:01:00 AM
From: Pied Piper	Respond to of 4467

"the number of days to unwind the short position" This is right off the top of my head and I am no expert, having never shorted a stock, but try this: If there are X shares short at a given time and the average number of shares traded in a day is Y, then (on average) it should take X / Y (rounded up) days for all shorts to cover. Does that make sense? Piper

To: Wayne K who wrote (3798)	2/13/2000 1:21:00 AM
From: keith massey	Respond to of 4467

Piper is right on his analysis... For example... if a stock has 1 million shares short and trades an average of 200,000 shares per day then in theory the minimum days to cover all shorts is 5 days if ever trade is a short cover and the volume stays the same as the average volume. People look at these numbers to see if there is the potential for a short squeeze on the stock. One note: I'm not positive about the TSE but am fairly sure about the CDNX on this point (maybe someone can clear this one up). Although a stock might have show no shorts on the offical short report there might be millions of shorts on the stock. As I understand the loophole rule a house can short 50% of the shares held by their customers without declaring the short officially. For example, if Canaccord customers hold 5 million shares of a company.. Canaccord house can short 2.5 million shares without have to ever declare these shorts and these shorts never show up on the official short report. This is the way I have always understood this rule and am not sure if this applies to TSE stocks or how this now works with the new CNDX . If anyone has had further experience with this loophole rule I would appreciate some thoughts on the matter. Best Regards KEITH