I don't know why people panic about the short positions. It is not the shorts you need to be worried about. It is the falling IO price, last time it went to $110/dmt the AGO SP went to 69cents. It doesn't take a genius to work out that if AGO stop making any money, then the market won't like it. Peter a number of brokers will want you to close the position within a year. If your trading CFD's through comsec you can hold on as long as you can support your margin. After the AGO share price has gone back up to $2 plus which I think it might, it would be a bit scary holding on to a short with margin over a million bucks. lol This is why shorts are actually good for the Share price because when the news cycle turns they will nearly all start to cover their positions. If stock has an unusually large number of shorts for no rational reason, then the market may take it negatively. However the bullish correction which will ultimately follow will more than compensate for it. Right now AGO is making about $100 Million bucks a year. A few weeks ago it was closer to $200 MIll. All things considered, I reckon the SP is holding up spectacularly well!
AGO Price at posting:
$1.04 Sentiment: None Disclosure: Not Held
