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78.0¢ avz minerals limited

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Provedore

61 Posts.

16

29/03/22

09:34

Post #: 60483074
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Originally posted by Freehold: ↑

Interesting the "Peak" of the short positions held on AVZ was on the 10 Dec 2021 with 1.31% of shares issued .

Between the 5 Nov and the 10 Dec 2021 there was a very quick buildup of shorts from a low on the 5 Nov of zero shorts to 1.31% on the 10th Dec . If you look a the AVZ stock chart over this same time frame you will see that the shorters were most likely big losers as the share price rose from 48c to approx 73c ( peak 23rd Nov) then back to mid 50's.

So If you think those going short are the "smart money" or know something you don't then your very much mistaken. There are many finger in the air punters (including insto sponsored) guessing on the short side just as there is on the long side. Only the risk for the shorters is very high when a sharp rally ensues as they must buy long to cover. Short position risk is "theoretically" unlimited just as there is no limit on how high a share price can go.

PS: Also note that our Lithium Peers of decent mcap generally speaking have much higher short positions on average than we do. I don't see a short % of under 2% as anything unusual. Once above 2% I pay more attention above 4% and start doing some research if there is anything FA causing it. Usually there isn't or its fake news being promoted by some entity or other so they can profit from their short position. See Short Attack on Vulcan Energy a few months back.

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Hi Freehold,

Appreciate your unwavering rationality in these forums.

Any thoughts on the recent spike in shorts? Seems to be getting close to your 'warning light' policy?

Cheers,
Prov

AVZ Price at posting: $1.19 Sentiment: Buy Disclosure: Held
5 Upvote

1 Great analysis

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