PeterPlus "I think that an underwriter has borrowed stock and is short selling it to drive down the price in order to buy in to the new issue at a low price."
PeterPlus, that would fall under manipulation & insider trading. ASIC is currently having a crackdown on insider trading, & any such exercise as you mention is too transparent & too easy to monitor. When you borrow stock, you have to lodge your full details to the stock borrower. ASX & ASIC now have stricter demands on information from Shorters compared to practises from years ago.
Hope that helps.
BRU Price at posting:
$2.95 Sentiment: LT Buy Disclosure: Held
