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Topic: First Magestic may be in play (Read 99 times) previous topic - next topic
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First Magestic may be in play

Up big in after hours today.  Volume near 500,000.  Rumors that the Reddit crowd may be going after the shorts.  What do you guys think?  This started moving with volume on Monday.  Potential takeover? 

Re: First Magestic may be in play

Reply #1
45.8 million shares short on 1/15/21.  Anyone have access to more recent short interest?

Re: First Magestic may be in play

Reply #2
Could be a favorable tax ruling in Mexico, block buster exploration news or any of the items you mention or something else, but it is probably big because as you say there have been lots of people getting a jump on whatever the news is. I expect a news release overnight or in the morning.


Re: First Magestic may be in play

Reply #4
You would think this is happening to SSRM which has sold off beyond anything I expected.

Re: First Magestic may be in play

Reply #5
I think reaction to the tax news is overblown because of the large AG short position. It might take a couple days to sort out, but short covering is going to be swift and then realization that the tax issue is not resolved will sink in and we could see AG around $15 or $16. It is interesting that several miners with a large Mexican presence are doing well this morning. It is also interesting that PM's are doing well following news of a tepid GDP report suggesting the fed will continue their malfeasance in spades.

Overall, I believe this is great news for PM's as there is more focus on the sector. Second plus is the hot money social media sites are allowing day traders to take advantage of market dislocations such as the excessive shorting of several stocks, it may spill over to the PM futures space. The bad outcome has been trading platforms taking upon themselves to regulate market access to the hot issues. They are not protecting their customers, they are protecting the outsized short positions, the big hedge funds in all probability. Maybe it is time for the required quarterly position releases include short positions and options as well as regular long positions, more light equals better price discovery.

Re: First Magestic may be in play

Reply #6
It looks like the hyped news of a silver short squeeze nd or the tax issue being resolved or delayed for AG has run its course and share price is again following the up trend established about a year ago. Several gaps are open above and below current share price; I do not expect the lowest one to be filled. I shorted a few contracts of AG 3/26/2021 15.50 puts this week and will do it again next week, possibly dropping the strike price to $15.00 as MACD is a little weak.