PLS 1.64% $3.00 pilbara minerals limited

I'll refer you to the last line in the post and the bold in...

  1. 9,095 Posts.
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    I'll refer you to the last line in the post and the bold in particular:


    "With the likely profits here a dividend yield will go a long way to stabilising price here (or making it harder to play with the SP)."


    I am not saying shorting won't happen but its effects won't be as wild as the impacts you might get with speck plays or entities just coming into production IMO IMO. The dividend yield attracts another type of investor if price goes too far down on no news and there are clear BOTS on the stock or shorting may be evident it will return far quicker to been orderly.  In terms of shorting I find the practice a disgrace like BOTS btw, and the fact it was banned in the GFC for a short period suggests shorts do not do much good in the market (accept rip SH of). 


    Another way to put it, outside the sharemarket I struggle to see where for example you have the right to sell someone else's asset, lets make it a  house for an extreme example here, to a buyer and then pretend you can buy the same house back and return it to the previous owner as if you never sold it to a buyer in the first place. 


    Sharemarkets are orderly enough you don't need shorters.  All Bots do is sell a share (either single or less than $500 and still pay no brokerage) here to manipulate a price in the direction they want it to go, whilst shorters see an opportunity to make money by selling shares and then buying back at a lower price - the time I suspect shorters and BOTS are working together is when you see little shareholder sales and then you get a couple of shares sold lower or a small parcel that triggers stop losses down until the market resettles and SP goes back up (allowing a shorter to make a killing and nothing orderly about that either).  Some say that shorters can always get caught out if news drops suddenly, but this day and age given quarterlies and timelines in them shorters will have a good idea when news might drop, and btw I suspect that with shorts they would be very confident that news would not drop over 99% of the time during the period of the short (orelse shorting in some cases would not be around 10% of a stocks trade in that day).


    And when bad news drops it is obvious SP will fall and shorting just exacerbates the fall by even hitting more stop losses so I'll just say I doubt they get caught out either.  Shorter IMO if you play teh game right probably is less risky play than a SH buying a share, holding it long terms and hoping the SP goes up. I put shorters and BOTS in teh same sphere as defence lawyers - equal to scum, but recognise shorters will always be in the market so have to live with them


    All IMO

    Last edited by Scarpa: 12/01/19
 
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