think about this scenario - pure speculation though..1. Someone...

think about this scenario - pure speculation though..


1. Someone with deep pockets wants to buy ALK or buy large stake in ALK.
2. That someone senses IG needs funds but struggles to find finance.
3. So this individual starts shorting ALK big time while shorting ASM just enough to discourage IG from selling ASM.
4. Now IG decides to dump ALK and due to ALK's very low SP, IG will have to sell lot more ALK than he wanted and at massive discount.
5. IG advises his broker to look for interested parties who would like to buy block of ALK shares.
6. The person shorting pops up as keen buyer and due to ALK's very low sp, he/she manages to negotiate even deeper discount.
7. Sale proceeds and now there is no more short selling and sp recovers.

If this is the case then it will be short lived. but if it's confidence issue (which I think is the case) then we have a problem unless there is board refresh and perhaps new MD.

It could also be an activist group shorting both companies due to G's family support for Israel - not interested to debate who is right on the Palestinian/Israeli conflict but stating what could be a possible reason for both companies being shorted. I've seen this type of action in other countries over different issues/reasons so it's not really a new trend.