
Sunday, May 18, 2025 10:46:07 AM
Satire and humor have their place—I enjoy a good laugh like anyone else. But let’s be clear: the standard short seller playbook isn’t going to cut it with what’s coming.
You’ve been warned. The window for smaller short positions to quietly exit is still open, but it’s closing fast. Historically, when a preferred share dividend threat looms—like we saw with Overstock—the smart shorts consolidate and unwind before the trap fully closes.
If you’re sitting on a larger position, you already know you’re stuck accommodating those smaller exits, printing supply to prevent a premature squeeze. But ask yourself—when the time comes, who’s going to accommodate you?
Keep deriding my posts as “opinion” if you want. Ignore the warning at your own risk. But soon enough, fresh longs will smell the blood in the water and show up for their piece of the action. And unlike with CE stocks, they can do it here without restriction.
So go ahead—talk big, play the games, dismiss the risk. But if you’re not acting smarter than the textbook playbook, get ready for those textbook losses.
I’m just being a good sport giving you fair warning. But don’t mistake that for concern. I’m perfectly fine watching the unprepared take the full hit.
—Krombacher
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