There was an interesting discussion made earlier on the short selling. PDN and BOE have always been targeted for a long time. I always thought it was more institutional. There is a good post here by a pro that is worth a read (open the quoted section for more).
y0w4ll3t said
'I've traded professionally and personally for decades and I also short which is where I hope to offer some perspective as to why this may have larger short interest than usual. For the most part when I short its to make the long that I'm interested in larger and reduce risk. If I'm bullish on a particular uranium stock I would buy it and short a few similar sized uranium stocks that I'm less bullish on so that there is no cash outlay to put on the trade. You only need to hold margin against the position and pay borrow financing on the short. This allows you to be much larger on your long than you would otherwise be. Im often not outright bearish on the stocks I hold short, in fact I almost expect a loss on the short. The bet is that the long will do even better. If something bad happens to the sector as a whole though (some meltdown somewhere) I'm relatively protected. In saying that Ive never shorted a uranium stock, its just not within my risk tolerance.'
On another note, here is a little technical prospective I've run into on BOE recently (13 minute mark).
Add to My Watchlist
What is My Watchlist?
