Hi Daniel I agree short sellers must be waiting for a capital raise to cover. Currently there are 5 million shares short sold. Recent attempts to cover resulted in the share price running up. Towards the end of July the shares short sold decreased from about 5 million to 4.7million, concurrently the share price increased from $1.16 to about $1.70. The KMP announcements on the 3rd August then pushed the share price above $2.
Following the KMP, USA supply agreements, more borrowed shares were sold into the market to control the share price. Moving total shares short sold back above 5 million. Will the short sellers go to 6 million short sold with Dubbo the expected announcements?
With $56million in the bank equivalent to ~ 8 quarters of funding I think the short sellers are taking a big punt. When Dubbo off take deals are announced I believe the deals should include funding and partnership agreements from big international corporations as well as grants and guarantees from governments, putting the need for a capital raise further in the future. I can wait.
ASM Price at posting:
$1.68 Sentiment: Hold Disclosure: Held
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