With GoPro up over 100% since its IPO (which the mainstream media decides indicates massive demand for the 'future' infrastructure monetization of camera-on-a-stick clips), it appears there is another much clearer reason for the surge. As WSJ reports [3], the utilization level - the percentage of shares available to loan that are actually being borrowed - is near 100%. As Astec Anaytics notes, it's rare for a stock to have such a high utilization level as the cost of borrowing GoPro shares, a proxy for short-selling activity, has “immediately become one of the highest in our system."
“Although sharp and strong moves are common in the first days of securities lending activity of a newly listed company, and often unrelated to short selling activity, these numbers are dramatic even by those standards,” Mr. Loomes said.
[4]
It appears the squeeze has come and gone and today's 9% tumble may just be the start...
