Many of you probably know that short selling is selling a stock you don’t own. What you may not know is that, unlike the United States where you must borrow the stock in order to sell it short, Canada allows “Naked” short selling where you do NOT have to borrow the stock first.
As many precious metals mining stocks take on serious water over the past year there have been various attempts to explain the reasons why. Naked short selling, at least for Canadian stocks, has often been mentioned as a culprit.
One of the benefits to a subscription to the International Speculator is the ability to ask the staff at Casey Research questions. When enough people are asking the same question, they are likely to devote a section of an upcoming newsletter to it.
Such is the case with Naked Short Selling. The current edition of the International Speculator just released last week covers the topic in some detail. Their analysis may surprise you. Included is a specific example of a stock hit by a wave of short selling recently.
For anyone invested or interested in precious metals & associated mining stocks, I cannot suggest strongly enough that you take a free test drive of the International Speculator.
Your portfolio will be glad you did.
