a great short., page-37

While the thread header was aimed at the Nasdaq listing it actually highlights what started to happen yesterday.

Since the spate of short selling on the ASX last December all has been quiet on the short selling front for PRR for the reason pointed out by Funkymonk that you dont shortsell into an uptrend. Yesterday the shortselling ticked up a cog and 1,263,368 PRR shares were short sold playing on perceived disappointment sentiment arising from the Nasdaq listing. This shortselling probably hooked some actual holders into selling creating a downward momentum.

The shortsellers will be actively promoting their trade and they will possibly be talking down the stock in order to keep that downward momentum going so they can cover their short at the cheapest price possible. Food for thought that the shorters can only make a profit if holders oblige them with cheaper supply.

I am astounded at the market action since Nasdaq listing. It seems that some holders actually expected the Nasdaq trades to set the price for the ASX. Such expectation is both illogical and naive. While over 90% of the shares are held in Australia imo there can be no doubt that its Australia through the ASX that will be the determiner of the market price, regardless of what price the small number of shares that are traded on the Nasdaq. When trading volume is more substantial in USA, then the Nasdaq action becomes more significant.

In spite of what is perceived as anti-climax re Nasdaq I have no doubt that it is a good thing and in the long run will positively impact the sp.

Just my speculation but what is probably happening is that the traders hoping to make a quick buck from the Nasdaq hype have taken their profit or loss and jumped ship. Other holders have seen this selling pressure and sold. Now the shortsellers can smell the uncertainty, including from the commentary of some on this forum and they have come in to profit from the fear. Of course as previously stated they can only profit if holders are willing to provide them with supply at a cheaper price than the price at which they short sold.

So its no good blaming the Nasdaq listing for the current action, as that is a positive, but rather I just have to accept that there are Aussie shareholders who for whatever reason are willing to provide supply and attracting the attention of short sellers in the market who profit from downtrends.

The ASX sp is whats important at the moment and from what I can see happening at the moment more buying is needed for the recent uptrend to continue. In spite of the market machinations I remain confident that as we get news flow in the coming months the prospects/sentiment will improve and the Nasdaq activity will increase. Martin Rogers highlighted that the Nasdaq listing comes at an appropriate timeline for the company and I await for the benefit that may arise.

In conclusion I reflect on the fact that its the weight of selling over buying that has stalled the upward run. The traders have jumped and the shortsellers are now plying their trade. If holders want to accomodate them its their, sigh, right. Thats the market. Just my opinions/observations.