“ Guaranteed Future Stock Buyers
There’s more good news for the stock due to the intense negativity of some investors.
AMG is “One of the most shorted stocks in Europe….” according to a recent report from Amsterdam-based bank Kempen. Short sellers sell borrowed stock in the hopes of buying back the shares for a profit at a lower price.
Kempen pegged the overall short position totaled at a staggering 30% of the outstanding shares, in the recent report which was August-dated. Others, such as the Shortics website, which tracks short selling, says the total reported short position is 21% of the outstanding share floatation, up from less than 1% at the beginning of 2018.
Either way, some investors are extremely bearish, but that is exactly why you should be bullish.
Short sellers can be defined as guaranteed future buyers. Sooner or later short sellers must return their stock to the brokerage from whom they borrowed it.
That 21% short position would take a staggering 30 days to unwind based on current trading patterns, according Shortics. Put in practical terms, that means that when a rally comes, it could be fast and fierce.“