Q: Hi 5i
Current holding 1/4 position in AYA.....How do you view the recent short report on AYA? would you continue to hold or exit.
Thx
Current holding 1/4 position in AYA.....How do you view the recent short report on AYA? would you continue to hold or exit.
Thx
5i Research Answer:
The short report did 16% damage, but it has all already been recovered. The company's response outlines the errors and mischaracterizations pretty well, we think. AYA has lots of cash and EPS is set to rise 50% next year. Geological reserves are subject to some interpretation, but the report was clearly one-sided and self-serving. That being said, total short interest (two markets) is 18% so the shorts have taken a bet here. We would be fine holding a small position.