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Message: CEO blog High-Frequency Predatory Short Action (Oct 1 to Oct 15 period)

Hi All,

I thought that I would expand on my October 6, 2020, post.

I wait until the latest versions of both IIROC Short Sale Trading Statistic Summary Report and IIROC Consolidated Short Report are published before writing my blog, as I need to have both reports to get a complete picture of what is really going on.

The first report tells me how many shorts trades were reported during a 2-week period, while the second report tells me the size of the open short position on HPQ at the end of the 2-week period.  I then use that information to get an idea of the % of reported short trades that are actually converted into a long-duration short position.

Over times, that gives me a good indication of what is really going on, and I now have enough data points to differentiate between the effect short trading done for cashless warrant exercise have done and the effect High-Frequency Predatory short action is having on the market…

As many of you are aware, for some time now I have been very public with my view that high-frequency traders with a short bias on HPQ have been trying to manipulate our share price to make money, and the historical data and the latest data confirms that.

During the first two weeks of October 2020, High-Frequency Predatory shorts were still very active.  Declared short trading activities of 3,986,241 at an average price of $0.544 (versus 3,4889,265 at an average price of $0.44 as during the last two weeks of September).

That represents 18,42% of all the volume generated during the period (up from 13.78%) and the cash value of all the share traded was 18.61% (up from 13.88%). 

The 10% threshold indicate abnormal short trading activities and we are now pushing close to 20%.  The fact is that this is the highest percentage we have had since the beginning of the year.  Even bigger than the 16% reported at the highest point when short trading was clearly done as part of cashless warrant exercise activities.

High-Frequency Predatory shorts used these last two weeks to increase the size of their open short position to 1,386,705 (from 128,563 as of September 15, 2020, and 701,122 as of September 30, 2020.)

But doing that, they have increased their average selling price to around $0.544 and assuming that they are paying banks 10% interest to borrow the shares, it seems logical to believe that these traders need to get the stock price below $0.50 to break even now.

As this morning pre-market activity showed, the High-Frequency Predatory shorts need to keep HPQ share price below $0.50 and they are probably placing phantoms open sells orders on the Ask (just like the two large Scotia orders on the ask this morning) to demotivate long investors and get them to sell their shares so they can cover at a profit.

In parallel, these short will continue to deploy their agent of disinformation on many BB to start trying to create a negative perception of the Company and its management.  

Other interesting information from the data:

1.     Over the last 3 periods, the High-Frequency Predatory shorts have been forced to increase the size of their bet against HPQ, and that is starting to be expansive for them;

2.     To get an idea of the scope of the perverted the effect this High-Frequency Predatory shorts are having on HPQ share trading, look no further than the fact that since the news that PYR was taking HPQ shares instead of cash in May, HPQ as traded over 299,411,124 shares, or put in another war during that 4 month period we have turned 1,2 time our full float…

Until regulators get serious about this, the best thing I can do is inform shareholders of what is going on, and by doing so exposing these scums to a bit more scrutiny and light then they are used too.

While I cannot give any trading advice or recommendations, I can point out the fact that short need to buy back their shares below $0.49 to make a profit.

HPQ is moving forward with its projects and that is where I am most active, but I still thought that you may appreciate my take on what I see going on in the market.

Regards,
Bernard Tourillon

 

 

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