ASX Today, page-36749

On another point....I make the observation that it was JP Morgan that had a close relationship with ALB because they had made a commitment to fund their takeover bid for LTR. Then after the due diligence, apart from the entry of Hancock which obviously may have been a factor leading to their withdrawal for complications (or something), I wonder if JP Morgan said to ALB that they had changed their mind?

This may have well been imo because of their "insight", or more likely, their complicity in the rapid and damaging fall in the China spot price. They probably saw an opportunity to make much more money by riding the short seller wave with hedge funds together with selling futures contracts on the Shanghai exchange, than lending money to ALB. Then with the knowledge of ALB's parlous financial position, they were able to offer ALB "help" by placing their holding in LTR to raise important funds for ALB's balance sheet. Those shares were then farmed out to the very hedge funds who could close out their shorts at an enormous profit, which no doubt was shared with JPM.

I know this all sounds totally clandestine, but imo it is totally plausible and having been involved with dealings with Investment Banks in my past life I really believe it is not only possible, but probable, with a few differences to my scenario no doubt.

Then we arrive at today's situation. It appears that the short interest may be substantially wound down in part because of ALB's sale but also, I believe because the overhang of shares available to close shorts via the ALB holding has now disappeared. Smaller short seller types (retail) may well now realise that once institutions reduce, it makes their short much more risky. Of course the likelihood of Hancock re-entering is also a major factor as nobody wants to be caught with their pants down.

regards
DF