04-10-2019, 10:25 AM
(04-10-2019, 09:19 AM)Mrebs Wrote: Sorry to hear you sold half your position but a profit is a profit! IMO you might have been taken advantage of. Short interest went from 8.5M to 11.8M in 2 weeks and it looks like an additional 1M shares were borrowed today to help drive it down, and that just so happened to line up with a SA article that was based on opinions. I am sure Q1 numbers will be strong which is why I am still holding all mine, but they are over the 1 year threshold for the tax break. We will see soon if it was the right move.
Yea, shorts apart, the simple reason we bailed out of half our SHU position is that I can't answer the issues mentioned earlier in this thread and the fact that the shares didn't rally on this mornings news. Since we have close to 11K followers on SA we felt compelled to announce that this was moving a little out of our comfort zone. We suspect that the conversion rate might very well come down quite a bit, could be well below 50% even.
In fact, that in itself wouldn't be a disaster but it points to aggressive promotion of the backlog, which now seems to stand at a colossal $938M or so. If they're overly aggressive reporting backlog, they might well be aggressive with other things. There is no indication of that as far as I know, but it reduces the comfort zone, to be honest.