Sep. 14 at 1:05 PM
$PHAT
1. Why lending + accumulating can be a smart strategy
Lend shares out → institutions/hedge funds collect lending fees while shorts create selling pressure, which can push the price down.
Buy more shares on dips → those same funds can quietly accumulate at cheaper prices.
Recall shares later → once they want the short trade to end, they can recall the lent shares, forcing shorts to cover. That covering demand + reduced float can send the price sharply higher.
So yes — if a stock is “hard to borrow” (limited float, strong insider/VC control), this strategy can be very effective.