Loading ...I just spoke to Direxion concerning JNUG and wish I could report all we discussed, but I concluded the call about as confused as I began.
Some bits for what they’re worth:
- Direxion was concerned that JNUG/NUGT ($1.5B) were getting too large for the PM universe ($__B). a case of the tail wagging the dog
- as of Thursday JNUG shares are fixed at 168 M; as of May 1st 4to1 split = 48 M shares; share price adjusted accordingly
- shares of DUST/JDST are not fixed – this should actually be a positive for JNUG long term
- assuming PM shares trend upward over a long term JNUG/NUGT should also, but can diverge – For instance, a large holder of JNUG/NUGT could sell resulting in a short term drop. Having a smaller fixed number of shares should actually lessen this possibility.
I hope I recorded the above accurately, but like I said my head was spinning.