Well, you may have all wanted a reason for the stock price...

Well, you may have all wanted a reason for the stock price falling from 56 cents to 32 cents, and I think you may be able to see it in this announcement. It looks like since the 8th of April this year 2021, CBA and their owned pension fund Colonial First State have been borrowing shares from Merril Lynch International, and shorting the stock.

It's a matter of  how long they will go on shorting the stock, when the borrowing will end, what low price they have on a conclusion to the selling, and when (and at what price) they will attempt to cover their shorts, if in fact this is what has happened.

Quite often,insiders are able to garner information prior to the release of a company report or major event, and therefore get an inside run on influencing share price direction.

If AMI is soon to be reporting their 2021 annual financial data, then it may depend on whether the insiders know AMI is going to declare a dividend or not, and how much. Why does this matter? Because if AMI declares a good dividend, then the borrower often has to pay the lender the dividend, which CBA and Colonial may not want to do, and so they may decide to cover some of their shorts prior to the dividend. However, if AMI is not going to report any significant dividend, then CBA and Colonial may decide to keep borrowing and keep shorting and forcing down the share price until their algorithmic financial modeling software indicates to them that it is time to cover the shorts.

The stock is at a one  year low, so I'd expect any rumour of a reasonable dividend will at least cause some short covering and an initial bounce back in price.

Anyway, it's an interesting one to watch, and I'll look forward to reading the financial year report and the extent of any dividend if one is offered.

Gw