The comments below were kindly posted by Patchspike this morning on the WBT forum and may help explain what's happening with the IMU share price.
Both companies have a similar MC and are included in ASX 300 and their share prices have fallen to ridiculous lows. After Friday, there could well be a re-rate on the cards for both companies.
"The shorters will try and keep the share price around these levels, or even a bit lower till close of business Friday
No doubt the shorters have an arrangement already with the index funds who will be releasing stock to buy them out.
Unless another buyer comes in and/or WBT makes a positive announcement it shouldn't be hard for shorters to keep the price down
From next week on it is a new ball game The players who have been shorting may move to the other side of the ledger as they did prior to WBT entering the ASX300 and subsequently the ASX200 some many moons ago With respect to the ASX 300, which WBT is still included, the index weights for all stocks in the ASX 300 are adjusted based on current market values
So with respect to WBT the index funds who held WBT at the last rebalance date 6 months ago did so on a $3.50 share price The price is now under $2 and therefore their WBT holding requirements are now some 45% lower
This is likely to release some 4 to 6 mill in shares, which I am sure the shorters will look to take to close out their shorts
It has nothing to do with MSCI which is a different index base
You don't have to be removed from an index to change an index stocks holding amount The price of the the stock itself will determine the amount required to hold"
IMU Price at posting:
5.0¢ Sentiment: Buy Disclosure: Held
