holders of MGC..

Obviously we have got this quite wrong (in the short-term). Im long at 99 cents, and wish I was closer to that number. we have dropped 25% in the space of a week - and it has been awful to watch. What do I think is happening?

One thing is for sure - no one is shorting it. short interest has been non-existent. I believe this is just long holders selling down at a loss - perhaps for end of year reasons. There could be a few others:

- Perhaps farmers who bought shares at $1 are selling out at a small loss?
- Anchorage capital still selling out (started 7 trading days ago with 12m shares)

If something was under the covers, and the company was going to disclose even further bad news - we would see the short interest much higher.

My general feeling is that there is a lack of buyers for obvious reasons, Regulatory enquiries, Class action, Board members resigning. So I feel we have a basic supply and demand imbalance which will work itself out.. you cant sell your shares twice

I hate to read all these bears with their posts, but if there was a true reason to be a bear, and this was going to zero - then we would see continued shorting - bottom line - there isn't.

An article which I think is worth a read is

"
PAC Partners director Paul Jensz told The Weekly Times yesterday share prices “go up and down quite a bit”. “There is a lot of uncertainty with the platform Murray Goulburn has at the moment,” Mr Jensz said.

“There is some comfort that the strategy and the scale and the momentum that they (Murray Goulburn) have should deliver a reasonable company over time.
“It’s just investors, and obviously the suppliers, and the company itself, is searching for what that base is.
“When there is some uncertainty over that base, the investors have trouble working out what the share price is.”
Mr Jensz said losing three directors only fuelled the market uncertainty.
“But I come back to the basic fundamental: Murray Goulburn still controls 35 per cent of Australia’s milk and has a reasonable cost base, which has improved.
“The strategy of value-adding is sensible.
“The one in 10 or 15-year dip in milk price — it’s pretty hard to get through that.”
“But MG needs to use this class action as a bit of a wake-up call.”

http://www.weeklytimesnow.com.au/ag...d65a8ea03302b808775a4e644#load-story-comments