I come here for the entertainment I come here for the education. And I posted a few misleading detours yesterday in my petulant display of bravura . Amongst them: sev.en lacking the financial heft to buy any CRN assets. They have managed to buy a number of sizeable Australian assets to date so maybe they can do it again. But the US$40m outlay for the Notes - if true- is dumb. no more sources of CRN borrow. Not necessarily. Whilst I believe L1 Capital and Australian Super have departed so no source of CRN shares to borrow there but what of the professional punters which have been buying in these past 10 weeks? They are very likely to have funded their outlay with margin loans from from investment banks like Goldman Sachs. It is entirely possible that the lender and their custodian providers are all too willing to provide that CRN stock to new borrowers ie shorters! And, one cannot rule out the possibility that major shareholder EMG group is lending out the CRN stock ..though I would be surprised. So do I still believe that a short squeeze is developing?. Yes. The opening of fresh shorts at these prices is dangerous..and I suspect is being done by inexperienced, ill-educated operators. Looking at the CRN 10cent-11.5cent market at this moment...14m CRN on the buy and 4m on the sell. Shorters be afraid...be very afraid. Lesson over.
CRN Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
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