Ann: Erregulla Deep-1 Update, page-237

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mcappa

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29/08/24

16:42

Post #: 75439647
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Originally posted by Idle Wanderer: ↑

Well, I'm thinking most of The Smart Money went short early, maybe even months ago, at prices in the low .20s.
The Modus Operandi seems to be :
1. Identify a likely prey a few months in advance.
2. Borrow while the price is high from dumb Super Funds and even the Index Fund purveyors themselves.
3. Once set with a healthy short position, then and only then bring in the price destroying mechanisms.
4. Buy blocks from the Index Funds on the prey's exit from the Index.
5. Return said stock to the lender.
Steps, except Step 3, are reprehensible but totally legal. Step 3 is market manipulation, IMO.
So if The Smart Money took their short positions for the dance at around 22.5 and buy back from Morgan Stanley and others tomorrow at say, 19.5, they would have made around 13% nominally on the trade. Except they do not pay full freight for their shorts, they rent them for a fee plus interest. So their actual return based on their dollar value exposure is far higher.
If all had gone according to their plan, the bots would have kept the STX share price pinned down around 16.5, thus doubling their profits. The reported sniff of hydrocarbons from ED1 has partially skewered their ambitions.

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Thanks for explaining that seems to make logical sense.

The shorts would want to be sure the fund would exit to adopt that strategy otherwise they would be in a pickle.

STX Price at posting: 19.5¢ Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

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(20min delay)
Last 16.0¢		Change 0.000(0.00%)		Mkt cap ! $458.7M

Open	High	Low	Value	Volume
16.5¢	16.5¢	16.0¢	$205.9K	1.279M

Buyers (Bids)

No.	Vol.	Price($)
15	1279576	16.0¢

Sellers (Offers)

Price($)	Vol.	No.
16.5¢	978794	16

View Market Depth

No.	Vol.	Price($)
15	1279576	0.160
30	2511604	0.155
33	2233484	0.150
10	960699	0.145
12	1192698	0.140

Price($)	Vol.	No.
0.165	978794	16
0.170	2108177	27
0.175	2625607	19
0.180	2344389	19
0.185	133096	8

Last trade - 16.10pm 17/06/2025 (20 minute delay)

STX (ASX) Chart

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