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ProCapitalism

4,439 Posts.

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22/01/18

13:38

Post #: 30467896
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Originally posted by GCar ↑

Here's a scenario:
Blackrock etc lend UBS a bunch of shares.
UBS shorts, price drops.
Blackrock etc start buying up "their own shares" at a discount.
When UBS has to cover, supply is tight and Blackrock etc start selling into the covering (that backfires for UBS coz there isn't enough cheap supply).
Blackrock etc make a quick 20-30% on this backfired short covering (selling those bought shares back to UBS), making a buck on that "trade", and still getting back their original holding once UBS returns their borrowed shares!

Simply a game of chicken and speculation by the big boys, shaking money from each other perhaps?!

As Flashfish points out, not many loose shares in the 18% retail, most of which we presume are not being fooled by these games and are holding tight...? I guess they push hard to try to hit stop losses though, which would certainly free up some, particularly with the big drop/s of late.

Just some thoughts... imo.

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Sounds plausible.

Retail is only along for the ride!

GXY Price at posting: $3.49 Sentiment: Buy Disclosure: Held
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