RED 3.90% 37.0¢ red 5 limited

A word about "shorting" - why its not illogical or concerning...

  1. 2,337 Posts.
    lightbulb Created with Sketch. 1299
    A word about "shorting" - why its not illogical or concerning for retail RED SH's.
    Ask yourself how is that the main users of silver are both simultaneously long and short ?
    They do this to try and maintain price stability.
    At one time, JPM was said to be "short" one year of world silver production - thats why buying silver is a mugs game.
    Now when a gold miner becomes an "institutional grade stock" as reflected by "substantial shareholder notices" and admission/elevation in various indexes, the stock by definition is a "high conviction" stock, and building a position takes time, as does exiting - if the latter occurs during a period of poor liquidity, the SP can absolutely be shredded.
    Sometimes, when a stock falls out of the index, its underlying fundamentals are not deserving of such treatment e.g. when RMS got dropped.
    Other times it deserved and it's the "kiss of death" .... you fill in the blanks.
    Now many funds have no compunction about lending their shares for a small profit, even though this is harmful to other shareholders - this is why there are never ending calls to abolish "shorting" (as been done in some markets) - fundies and brokers say that "shorting" serves a valuable service - it increases turnover (their life blood) and it reveals stuff to the market - the former is always the case, the latter some time.
    Ask yourself how CMM, years away from producing anywhere near KOTH, let alone paying regular dividends, remains in the GDXJ and despite being heavily shorted .... expect RED shorts to increase as its SP rises.
    Most funds have bought in the low to mid 30's, so I expect this to solid support for some time ... unless the POG and/or the market crashes.
    Last edited by MIStragic: 07/12/23
 
watchlist Created with Sketch. Add RED (ASX) to my watchlist
(20min delay)
Last
37.0¢
Change
-0.015(3.90%)
Mkt cap ! $2.516B
Open High Low Value Volume
39.0¢ 39.3¢ 36.8¢ $14.90M 39.68M

Buyers (Bids)

No. Vol. Price($)
2 387085 37.0¢
 

Sellers (Offers)

Price($) Vol. No.
37.5¢ 1040379 11
View Market Depth
Last trade - 16.10pm 26/06/2024 (20 minute delay) ?
RED (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.