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

AVZ

0.00%

78.0¢ avz minerals limited

Ann: Extension to Voluntary Suspension, page-45

First 45 Last

Share
Profile

Follow
paddywack

941 Posts.

61

01/06/22

10:14

Post #: 61745200
Share

Originally posted by mondyinvest ↑

Hi all

I don't have a position (long or short) but am following for interest's sake. FWIW I think the 'evil shortaz' narrative is unhelpful, because it deflects attention away from the real issue - which to my mind is the fact that the company has evidently known about this matter since at least December 21, but only disclosed it in early May 22. It's a material fact that has impacted shareholders (trapping their capital for what I think will be quite a long time - refer to EQX as another example, as I mentioned here: https://hotcopper.com.au/posts/61334498/single). That post was written 11 May when some were suggesting this was a storm in a teacup and it would be resolved within days. I think reality is dawning, that this is extremely messy and could take a long time. Unfortunately that ties up capital for extended periods, and if/when it trades again, some people simply want to rescue their capital (as @BOT has previously alluded to).

To me it's a company disclosure matter, not a shorting one - people who are short the stock are simply positioned because a) they think it's overvalued or b) they did their own research and anticipated these matters before they were publicly announced (without anticipating it would be suspended... whoops!). I think if this doesn't pan out well, then shareholders will eventually go from blaming evil shorters to joining shareholder class actions. Hopefully that's not the outcome, but it looks a real possibility. Company management have some hard questions to answer about what exactly they knew, when, and why they chose not to disclose it to the shareholders who pay their salaries.

Go ahead and attach Boatman, Twitter critics, shorters, me, etc if it makes you feel better - but the real hard questions should be put to AVZ management. Wishing holders good luck.

Cheers

Expand

Mondy, fair call. Well put. All Good here.

The question on disclosure (Rule 17) will be in abeyance for just now but it's quite OK to contemplate it. It will come down to the Board's judgement at the time whether these spurious claims were just BS and that the market (in the Board's opinion) would be led astray by acknowledging the said claims. The Board probably thought it was just noise and would go away with proper government intervention (in the back channels if you like).

AVZ Price at posting: 78.0¢ Sentiment: Buy Disclosure: Held
16 Upvote

1 Great analysis

Reply

Top Stories

LVH

Livehire sees share rocket 91% on takeover bid by Humanforce

ORP

Orpheus delays drilling at South Australian play Frome, on traditional owner advice

Bitcoin: Current State of Play & Where to Next | Swyftx

IR1

IRIS Metals sniffs 75 metres of lithium in South Dakota, pushing share price up 9.99%

Emerald & Azure score Digger & Dealer awards