Will IMU be removed from the ASX200 in June?, page-4

Shorters are an easy target for frustrated shareholders but it’s usually off the mark / shouting into the void. The actual mechanics are very simple:

1) Pre-revenue stock gets bid up to lofty values by retail hype / clever marketing / loyal following / promoters

2) Huge market cap growth pushes it into ASX 200 / 300 indices. Inclusion into these indices triggers forced buying by index huggers, i.e. institutions are forced to own the stock

3) Shares are now available to be lent out for shorting - totally legal (fun fact: super funds are amongst the most active companies lending out shares)

4) Smart money looks at the fundamentals (or lack thereof) and takes the other side of the long bet. Over time, especially in tougher market conditions, share price invariably reverts to the mean (i.e. the hype fizzles and the market cap slowly returns to more sensible levels)

5) Disgruntled holders blame evil shorters, useless board, evil HotCopper downrampers like @Stickshift, when in reality the whole process kicked off because retail bid the stock up to ridiculous levels

Sorry to say it, but this is just the same story here on IMU as it was on BRN, LKE, SYA, VUL, ZIP…