"the volume today included the 2m shares the founders disposed of."
Of course, you are correct.
Somehow, when I was thinking about the implications of the founders' sales for greater availability of stock for short selling, I got it into my skull that the founders' sales had completed a few days earlier.
Perhaps it was the shock of looking at such a large red number in my portfolio.
The paragraph below is from the ASX information on block trades.
Evidently the founders' sales must have completed on Thursday, and consequently, the sales were reported on Friday morning.
"Extended disclosure period - all block trades, with the exception of those conducted in the energy and environmental products, are disclosed to the market by the Exchange from 9:30am on the following business morning. This provision enables brokers facilitating block trades to unwind their risk prior to the market reacting to the large trade."
https://www.asx.com.au/products/block-trade-facility.htm
My mention of short selling was in relation to the general idea that if short selling is constrained, such as by unavailability of stock to borrow, then the wider market is unable to fully express pessimistic opinions about a stock. The stock price tends to be held up by those with an optimistic view such as I have about PME's prospects. I don't know if shorting of PME has been constrained by its tight register, but if it has been constrained, then it will be less so now, as more stock goes into the hands of institutions from where it may be lent out for short selling. I am guessing that the founders have never been offering to lend out their stock.
Another poster alluded to the same possibility of greater interest from short sellers, back when it was announced that PME would be included in the ASX200.
However, any PME shorts have to contend with the risks to their short positions that are entailed in PME's contract announcements, which tend to be large and sporadic.
One good contract announcement could really ruin a short seller's day.
The short sellers don't always win, but they do tend to be smarter than the average bear, which is why I pay attention to what they are doing in aggregate.
As of 2 Sep, the short interest in PME was just 0.52% (1.0 days-to-cover), which is relatively trivial if short selling has not been constrained.
I hope the short sellers never have cause to become more interested in PME - at least not while I own it.
Cheers
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Last
$143.26 |
Change
3.450(2.47%) |
Mkt cap ! $14.95B |
Open | High | Low | Value | Volume |
$141.98 | $144.34 | $137.22 | $77.47M | 543.2K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 400 | $143.00 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$143.30 | 8851 | 5 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 209 | 142.880 |
2 | 5592 | 142.770 |
1 | 968 | 142.760 |
1 | 1177 | 142.660 |
2 | 2029 | 142.560 |
Price($) | Vol. | No. |
---|---|---|
143.320 | 690 | 2 |
143.390 | 175 | 1 |
143.410 | 350 | 1 |
143.480 | 3708 | 1 |
143.500 | 100 | 1 |
Last trade - 16.10pm 28/06/2024 (20 minute delay) ? |
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