What a great opportunity NEA has been for short sellers.
The orange line in the graph below is the percentage of open positions (LHS scale). The black line is the share price (RHS scale) but restricted to reflect the 5 day lag on the data of open positions.
The short sellers have been relentless in driving down the price of NEA. They have heavily sold NEA and spread negative comments on Hotcopper. We are now seeing the final stages of this short attack. The institutions that follow the ASX 200 index will need to sell NEA. This will probably create one last downleg before the shortsellers buyback to cover their positions and return the borrowed stock.
The challenge for us long term holders is when to buy some more. I am unsure. On the one hand, I consider $1.40 an excellent long term opportunity. But on the other hand I could buy some more at $1.20. Maybe, I will have two bob each way.
NEA Price at posting:
$1.38 Sentiment: Buy Disclosure: Held
