STX 2.50% 20.5¢ strike energy limited

Ann: Webinar Registration for Q4 FY24 Financial Results, page-145

  1. 3,008 Posts.
    lightbulb Created with Sketch. 5714
    @618
    heres a little economics - i don't mean this in a disrespectful way, just wanting to illustrate a point.

    • in terms of daily share price - the supply and demand of the stock itself are the key determinant. the company fundamentals take a very back seat. esp in emerging companies. except where they can be used to suit a narrative.
    • in any one given day, if there is more stock being sold than there is being bought, the price will go down, and vice versa.
    • if you have access to enough money or stock, it gives you asymmetric buying and selling power in comparison to the market forces represented by the genuine, arms length, market participants. This power allows you to take advantage of the supply and demand dynamic.
    • so to increase the price, you decrease supply (sellers) and increase demand (buyers)
    • to decrease the price, vice versa.
    • to add to any buying or selling power you may have through cash and physical stock, stocks which would have otherwise sat in bottom drawers, are being lent, and sold and churned and burned using bots and opaque custodian accounts thereby magnifying the power one has to sway the price - if that is their intention.
    • even better, you can lend or borrow the stock but not its voting power, thereby allowing you to sidestep any mandatory reporting requirements.
    • short selling does many things, but importantly, it can allow appropriately motivated parties to "artificially" increase the number of shares being sold, and "artificially" play with liquidity thereby loading the supply side. ie. driving prices down.
    • my view is the regulators can not keep up with the weasels. and they would focus more on uprampers, rather than downrampers.
 
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