MFG magellan financial group limited

Ann: Funds Under Management - December 2021, page-48

  1. 14,217 Posts.
    lightbulb Created with Sketch. 123
    re: the short selling graph above and short selling process
    Important information if you don't want to get caught in a short attack again.
    There must be a time lag between the borrowing of stock from an institution and the actual selling of stock...
    such an innocuous miss in FUM surely does not deserve such a drop in price.
    All I can think is that an institution has lent stock to shorters a couple of days before the FUM announcement.
    the loan is recorded BUT no stock is sold.
    Then on the day the FUM announcement is made, short sellers start selling and the price starts to drop.
    Other investors see the stock price dropping so in a panic they start selling too.
    things snowball and you end up with a 5% drop in price.
    This is then followed by a victory dance by who ever is the shorter at the time (see post above)
    what's the bet then that the graph dips again in the next couple of days as stock is returned to the institution after being bought back again.
    thing is this buying back will put pressure on the stock to rise.
    Maybe in the next couple of days.



    Last edited by kennethgalbraith: 07/01/22
 
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