Hi black, good point. My view has been that it's retail shoreholders causing the volatility in this stock. Essentially lynas is full of traders and the massive use and leverage provided by warrants and cfd"s is causing people to be trigger happy, having to stop out with just a few cents move against them or the products automatic stops being hit and causing runs.
My understanding is that each time a retail investor buys a long warrant for example the issuer buys the underlying stock on market. Because of the leverage the issuer is buying 5 or 6 times the volume of stock the retailer could have otherwise bought with their capital. Similarly they have to short sell to hedge their shorts. So all this warrant trading by lynasheds from hot copper has a multiplier affect on volumes of the underlying shares.
The two big issuers of warrants are citi and rbs. Their trades are largely retail trades. Could you please post the total % of these two plus etrade and commsec from your figures. I think that will demonstrate what's happening.
I think the institutions might actually be a stabilising influence more than manipulators.
LYC Price at posting:
61.5¢ Sentiment: LT Buy Disclosure: Held
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