Fairfax possibly could be setting the market up for a Short Squeeze!!!
Hello fellow BBRY shareholders I have been a shareholder in BBRY for a few years now. I was just at my bank speaking about my investment when my registered representative hit me with a curve ball I totally missed.
He had said that the bank received notice asking shareholders on record at the bank if I would support the 9$ Takeover Bid and if I would like to commit my shares.
Looking at the market today I would probably have said yes. But then he hit me with the recent KD8
Kabel Deutschland Takeover KD8:Xetra Stock Quote - Kabel Deutschland Holding AG - Bloomberg
Now rules may be different in Germany for Takeovers but please hear me out on this one.
KD8 needed 75% to approve the 87 Euro takeover and if I understand correct they got it. It meant people who commited on the premium price at the time committed to sell at 87 euros.
Guess what ..... Stock is trading at 93 euros now.....why you may ask ???????
Simple answer SHORTS!!!!
How on earth will these short find stock when it has been committed ? They must pay a premium and they are now.
Think about the BBRY scenario ...One of the most shorted stocks on Nasdaq....imagine when stock is committed...BINGO!!!!
Prem is much much smarter then you think...he has a history of dragging shorts out of the market.
The KD8 is a perfect example of what may happen when shorts scramble.