GXY (ASX) Ann: Trading Halt

Originally posted by Mturns ↑

I find some people's reactions on this forum very contradictory.

Before this announcement there was lots of discussion along the lines of: "POSCO agreement is pretty much guaranteed and everyone knows it!!"

But now that it is confirmed some of the same people are acting like this is going to change the world?? So if everyone knew it was a done deal, why would it have the kind of impact people are suggesting?

That's not to say there won't be some kind of uplift, but the shorters are still in control and a significant uplift in Chinese lithium carbonate spot prices will have far more impact than a confirmation of something that the market probably put an 80% chance of happening. Not to mention the POSCO side of it adds more fuel to the oversupply fear mongering.

I am a long term holder and feel very confident in my investment, however I almost find it embarrassing reading some of the "shorters gonna burn" style remarks, when it clearly shows a lack of understanding of how the system works in the short term. The fact is no one knows in the short term and if anyone has the upper hand on this time frame it is the shorters as they can manipulate the market and the media.

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@Mturns, I scratched my head with the same question. But then there might be more market sensitive info in the upcoming ASX announcement regarding POSCO deal. US $280Mil is a great cash boost to develop SDV debt free, but I suspect the real kicker is in the anticipated info about the partnership, unlocking synergies and more $$$ from SDV and maybe JB!?!
It is this anticipation that has everyone excited....and of cause the chance of getting back at MS and their shorter cronies.
AT has a way of catching most investors and traders off guard with announcing significant company progress decision. Unfortunately, the timing of these news doesn.t always agree with the herd mentality of the smart money at that particular moment.

I am cautiously optimistic that GXY will have a good run when it trades againt, including some catch up from the positive day of li miners yesterday.
I don.t think we will see a big bonfire of shorts...some retail shorts will surely be crisped but the bug boys have their exit plan secured beforw they enter a big short campaign.
On the other hand, the several fold increase in outstanding shorts to >17% didn.t do too much damage to the SP, which stayed in the 3$ range. If anything, this suggest that 17% shorts built up some decent pressure, and SP might react like a wound up spring, uncoilling SP into the mid 4$.
I am loaded, but am ready to play a short term trade with some extra cash just to make short covering a little bit harder.
Fun times ahead!!!