Australia's largest stock trading and investment forum Australia's #1 stock forum

GXY

Click for more information

0.00%

$5.28 galaxy resources limited

Sounds plausible. Retail is only along for the ride!

First 44 Last

Share
Profile

Follow
ProCapitalism

4,538 Posts.

1617

22/01/18

13:38

Post #: 30467896
Share

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.

Expand

Sounds plausible.

Retail is only along for the ride!

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

0 Great analysis

Reply

First 44 Last

Add GXY (ASX) to my watchlist