Yes possibly. Following the exit of ASX200 and index funds position liquidation, this is the most logical reason for the remaining short position. Shorters may remain unconvinced of STX's ability to self fund its capex load for peaker and WE without raising. Perhaps they think WE development is being done inhouse instead of being farmed out to AGIG.
I had also entertained the idea of this being a hedge against an existing long position to protect against portfolio downside risk without selling the position. This is logical if the fund/s believes the downside risk is short term but the long term value thesis remains intact. So rather than sell out their positions, they essentially took out an insurance policy to cover short term risk.
Anyway, it's really hard to know what their true intentions are as there are so many possible reasons.... and I have no doubt these guys are way smarter than I am. You don't spend millions shorting a stock unless they have a near foolproof exit strategy. Yes it is millions they are spending a year. 200mn short position @ 25c average = 50mn open position, which equates to 5mn borrowing fee per annum at 10% borrowing rate.
Anyway, we will find out at noon today what the net decrease in short is post the index rebalancing.
618
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Last
21.0¢ |
Change
0.000(0.00%) |
Mkt cap ! $601.7M |
Open | High | Low | Value | Volume |
21.0¢ | 21.5¢ | 20.5¢ | $1.313M | 6.260M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
11 | 592504 | 21.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
21.5¢ | 748432 | 9 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
10 | 582322 | 0.210 |
22 | 1512044 | 0.205 |
28 | 880972 | 0.200 |
15 | 964889 | 0.195 |
29 | 1196918 | 0.190 |
Price($) | Vol. | No. |
---|---|---|
0.215 | 683524 | 7 |
0.220 | 796374 | 9 |
0.225 | 948630 | 8 |
0.230 | 684332 | 9 |
0.235 | 1730960 | 19 |
Last trade - 16.10pm 18/10/2024 (20 minute delay) ? |
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