Banter and General Comments, page-16787

First 16787 Last

Share
Profile

Follow
XForceOne

1,374 Posts.

76

10/10/20

11:05

Post #: 47995071
Share

Originally posted by clivemax: ↑

Hi All,

Here, (below) may be of interest -

'Why is Galaxy’s stock so heavily shorted and what is the Company doing about this?

Short selling is a legal form of trading that is largely out of Galaxy’s control.

Many of these traders have taken a view on the lithium industry broadly and are shorting Galaxy and its peers.

Lithium stocks are some of the most shorted stocks on the ASX and there are two other lithium companies in the top 10 most shorted list.

The fact that Galaxy is an institutional grade company means that there is the ability for shorters to borrow stock which is not available in the non-institutional grade companies.

We have made contact with an investment bank who represents a large portion of this activity.

They confirmed that the short position is largely driven by the lithium/EV thematic.

Additionally, they confirmed that Galaxy’s short position compared to its peers doesn’t necessarily reflect their clients’ preferences but more the borrowing availability of the shares and utilisation.

The underlying activity is representative of their clients’ views which is largely driven by machine-based decisions or what other funds are doing i.e. these funds move in the same direction.

The best way for Galaxy to combat the short position is to execute its growth strategy released in late 2019 and position the company for the inevitable market recovery in the lithium sector.

Additionally, Chinese walls exist between the buy side and sell side of any investment bank.

This means that within the same bank, there are strict measures in place to ensure analysts operate independently from the broking side.

This explains why you may observe a positive buy recommendation from analysts, whilst the same bank participates in short selling.

This is a common occurrence and not unique to Galaxy.'

Reference -

Galaxy Resources. (unknown) FAQ
https://gxy.com/faqs/

Expand

The way I see it is who cares if they're short selling as long as the company is performing. Rest assured the market will place the SP at its true value anyways. If I'm a big shark in the market and I have the opportunity of investing in a company which offers me 6% dividend I guarantee you I will be buying like crazy against the short sellers and these will inevitably have to recoil in their bearish strategy.

GXY Price at posting: $1.30 Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

Reply

Top Stories

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

TIG

Tigers Realm's US$49M sale of Russian assets – to a Kremlin-adjacent billionaire – set to go ahead

Week 41 Wrap: HotCopper asks “Back to Mongolia?” for Elixir; US CPI comes in at 2.4%; eyes still on China

CXU

Cauldron Energy reports "excellent" uranium assays in latest drill run

NWH

NRW Holdings inks $109M deal with BHP for works at Jimblebar

RAG

Ragnar impressed by 11.55 metre pegmatite in Sweden, anticipating further mineralisation

ASX Market Open: ASX200 to open flattish after Wall Street weakens on hot US inflation data | October 11, 2024

SHN

Sunshine Metals kicks off copper gold drilling at Truncheon; Highway East targets

A3D

Defence MOU for propulsion systems pushes Aurora Lab shares higher

IMA

Issues emerging as Australian companies tackle critical minerals challenge

There are more pages in this discussion • 4,245 more messages in this thread...

First 16787 Last

Add GXY (ASX) to my watchlist

Banter and General Comments, page-16787

Top Stories

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Tigers Realm's US$49M sale of Russian assets – to a Kremlin-adjacent billionaire – set to go ahead

Week 41 Wrap: HotCopper asks “Back to Mongolia?” for Elixir; US CPI comes in at 2.4%; eyes still on China

Cauldron Energy reports "excellent" uranium assays in latest drill run

NRW Holdings inks $109M deal with BHP for works at Jimblebar

Ragnar impressed by 11.55 metre pegmatite in Sweden, anticipating further mineralisation

ASX Market Open: ASX200 to open flattish after Wall Street weakens on hot US inflation data | October 11, 2024

Sunshine Metals kicks off copper gold drilling at Truncheon; Highway East targets

Defence MOU for propulsion systems pushes Aurora Lab shares higher

Issues emerging as Australian companies tackle critical minerals challenge

Featured News