*Stock Advisor returns as of December 16, 2021
Bill Mann: AMF, the bowling company, Brunswick (NYSE: BC), whatever. If Jim Gillies goes and says I want to buy a million shares of AMF. It doesn’t matter. I’ll pull something else by random if it’s not actually publicly traded anymore. We use Keweenaw Land Association (OTC: KEWL) ticker KEWL. Yes, that was a northern Michigan reference, if Jim Gillies goes out and says, I want to buy a million shares of the Keweenaw Land Association ticker KEWL, his broker could say, sure, I’ll do that. What the broker does is essentially delivers to Jim a million shares and then it’s got two days to go and find them so every time you make a transaction, even if for a split second, the broker short their shares, until it finds them. That’s the market mechanics. You got to be a little bit mindful, their short squeezes do exist. Usually, a much better way to find companies that are squeezable is to look at what the rebate cost is, that is the cost to be short, and that is what will tell you what the actual pressure is.