Looks that way -- for now
Terminal Shorts -- even though the SEC and others may not enforce (48 days now), it is still illegal. Which means that over the next 7 years, among other evidence, those who hold will likely get all of their investment back.
Falling Cdn Dollar -- and chart for $CDW suggest that penny players may be in it for as long as they can. Though some of these guys are so desparate that they play with a couple hundred dollars -- I call them college students.
Naked shorts -- my understanding is that cancellation gets anyone away from the 5% filing rule. Which means anyone can buy as many shares as they like and make an offer.
If it is Tembec -- maybe they acquire 4 million shares (avg. cost 0f $0.15) and then make an offer to acquire all shares for $1.00 -- leave it open for a month (Dynegy/Blackstone type) -- and stand by the BK Process confirmed plan.
Or maybe someone acquires 5% -- (same as above) -- fires management who supposedly gets 8.5% of newco -- then inserts themselves into the picture using the 8.5% under the confirmed plan.
Or maybe someone offers a higher number, in an attempt to get Fairfax to convert at over ten -- then they get out.
Lumber -- looks to me like its going higher and other hedges (on pulp, etc.) being reduced.
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Out for the rest of the day.
AI
