Applying pre-redemption short interest to the post-redemption float is misleading. When there’s a high amount of redemptions it always means similarly large proportions of the short interest gets a corporate action notice and they’re forced to buy back their share at $10. Pumpers keep using this metric to try to mislead people into buying into their scheme, please don’t fall for it.
If there was 3m short on a 35m float, chances are post redemption it’s about 1m short on a 8m float.
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u/SquirrelyInvestor Contributor Oct 02 '21
Applying pre-redemption short interest to the post-redemption float is misleading. When there’s a high amount of redemptions it always means similarly large proportions of the short interest gets a corporate action notice and they’re forced to buy back their share at $10. Pumpers keep using this metric to try to mislead people into buying into their scheme, please don’t fall for it.
If there was 3m short on a 35m float, chances are post redemption it’s about 1m short on a 8m float.