Hi
@stakx.
I'm not that familiar with Domino's stock history but take a look at those huge numbers of shorts and compare to the actual effect on price.
Very little to none.
In fact, share price has been going up.
If someone placed 73% of daily trade shorts currently against Galaxy they could easily bet on moving it 2c. (or 5% of market cap).
Wiping out 2 or 3 lines of strong buyers at a higher priced share moves it very much less.
At Domino's price level its a blip whether or not a huge buy order at a single price point is short sold.
The market barely notices and moves on.
Do you see my point?
The game changes a bit.
At a higher price level in the $2 range, liquidity may or may not change for GXY but it will introduce new buyers who may have previously not bought because of the sub $1 price range.
I never said that higher priced stocks don't get shorted, but it becomes more difficult to have such a large impact on the price (by percentage) with a single sell. They would now have to move the share price significantly more to have an impact. It enables more lines of support to form, and probably a more consistent pattern of less huge walls of shares.
The last Top 20 shows they have 55% of the company.
Hard to absolutely track ownership with so many nominees accounts, but broadly its fair to say that they're a fairly sticky lot, and that group of holders now owns more of Galaxy than they did last year. Its not misleading anyone to say that there is a good likelihood of this percentage increasing if we can satisfy the needs for our sp to get above the penny stock range and into the pockets of more instos and funds.
All this soaks up the float. More potential buyers and more scarcity of loose shares on the trading floor is good.
Some large holders will continue to hire out their shares for shorting but the game changes enough to create a circuit breaker against this current price action.
If you don't agree with what I see, that's fine.
As for their needs to raise capital. With a $60m credit raise already in the back pocket and Contract 2 pricing - what is any pressing need for further dilution?
Galaxy is emerging from the period where we were effectively only receiving a $300USD/t price (balance payment) and tripling it.
The sp target price of a sustained >$3.15 (63c equivalent) incentive target means that the BoD are in their interests to keep future dilution as minimal as possible
and shows their thinking in the most emphatic terms that we have seen so far.
Their goal is not to increase market cap without taking the share price up at the same time.
The future value is currently locked in the 2 new assets that GXY is expanding into, and the future higher pricing for Mt Cattlin's product, starting with the new contract next month.
The cash flow and CR give Galaxy enough capital for all planned works for the year. DFS and drilling at James Bay and pond construction at SDV. They could even begin construction of the James Bay mine, if that was considered the best move.
Vote how you wish or move on, but I see the company making a series of solid decisions that are going to pay off those who are willing to be patient enough to see this next period play out.
