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15:42
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Originally posted by Limno:
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I think you are misguided if you think there will be no more manipulation (or reduced manipulation). The whole cycle will start again where the price will slowly be pumped up to provide a steady gain until there is re-admittance to the ASX 200. Many made a huge killing with that process last time and while we are 'in limbo' with regard to announcements, the process is highly likely to be replicated by those who can. There is price manipulation in the short term but market manipulation in the long term. I have stated previously that I believe shorters have acquired large borrowed holdings in order to manipulate price and the market as they see fit. The climate is ripe now to push the price up steadily until an announcement. One hypothesis is that the shorters have used their borrowed holding to manipulate prices in order to accumulate (others have alluded to this as well). I don't believe it is in the shorters best interests to see WBT go out of the ASX 300 but they have a strong interest in getting back into the ASX 200 before there are too many positive announcements from the company. Given that many index funds leave it to the last minute to make their adjustments (we saw that in the auction prior to the ASX 200 entry and I suspect the recent drop is for the same reason. Meanwhile, those who can (shorters and big players) are now in a position to manipulate prices so we can expect to see more games from them, certainly in the short term.
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a few hours later i corrected my post to this: Post #: 72944778 i assumed that with the $18m worth of shares bought back on friday that it might reduce the shorts significantly but upon calculating what that means in % terms it is only a reduction of around 25% of the open short position give or take.
(20min delay)