08-07-2013, 05:56 AM
'Investor1979' pid='26682' datel Wrote:My feeling was that a major stock buyback could start a good short squeeze. Thoughts?
In my observation of heavily shorted companies, a buyback would probably have a slightly positive impact. Of course with IOCs small float, it might be more significant. I think with the short size and criminal shorts we have, IOC would need all of the following to get the shorts to cover in large numbers:
1. DEAL news
2. Buyback announcement followed buy actual large buybacks and reduction in float.
3. Stock split (at least 2:1)
4. Divi (one time or continual)
My biggest fear is that IOC management thinks the deal announcement will take care of the shorts.