Q: I have done quiet well with GWO over the years.
Today however I noted that My broker has disclosed that they have a net short position in excess of 0.5% of the total issued share capital of the issuer.
Based on this will you recommend selling the stock or holding it ?
Thank you for your insight.
Today however I noted that My broker has disclosed that they have a net short position in excess of 0.5% of the total issued share capital of the issuer.
Based on this will you recommend selling the stock or holding it ?
Thank you for your insight.
5i Research Answer:
It is but a single data point, and there may be some other reasons for a broker to own a position (long or short) that are unrelated to company fundamentals (hedging another position, for example). Total short position on the stock is 3.8%, which we would not consider noteworthy. At 9X earnings, we would see no reason to transact on this news.