That's interesting about the compensation MS are expecting for their investment banking services to the company. I wonder what exactly they have been doing for the company? Is compensation different to fees? Could this be a bit like the arrangement the company had with JP Morgan? i.e. nothing is paid unless there is a deal?
Regarding MS, they (and others like Macquarie) last year put out reports about a Li oversupply (and not just oversupply due to the present bottleneck with converter capacity) that was quite misleading. I believe it may have been deliberately misleading. And this information coincided with a massive shorting campaign in which they were active participants. I can't go into too much specificity here because it is complicated. I have it documented though and will make it available in due course if there is ever an enquiry into the ASX. I have in fact previously sent some of the information to the ASX and ASIC, but they have not acted upon it so now I don't bother anymore. Ultimately it is information which may be useful in the event of a class action (which I would not be a beneficiary of as I have not sold many of my GXY shares and so haven't really had a monetary loss).
I believe the shorting campaign has been driven by the banks and trading houses. It is interesting to have observed how some of these banks have been buying at the same time as they have been putting out misinformation and analysis that suggests people should be selling. Overall these banks have made a killing on the Li sector in general, but I think have possibly miscalculated in respect of GXY and are having difficulty in covering. Anyway, I guess we will find out one day what has been happening.
The manipulation that has occurred in the case of GXY has been totally unethical. In fact it is unlawful should anyone bother to enforce the law. GXY to my mind is as good a company as you could find to invest in, although in the last year I have also been dismayed by the management and its disinterest in looking after the interests of its shareholders. I am talking here about the interests of retail investors, as the institutional investors are being very well looked after. I find it just incredible that the share price has taken the hammering that it has even after the release of very good results and that ASIC and the ASX have not even raised an eyebrow. Examples include the pummelling the share price took after the release of the excellent first half year results (October 2018) and then again after the announcement of the successful sale to POSCO of those surplus tenements at the northern end of SdV. At these times the share price took an absolute hiding and the manipulation was there for all to see (and was commented upon extensively on this forum, and has been documented by me).
I mentioned in another brief post on this forum earlier today that I have become very cynical about everything to do with the ASX. Constant selling to maintain an artificial price. The placing of large bids (buy or sell as the occasion dictates) that are pulled immediately before the commencement of trade. After-trade sells to ensure the day's trade ends in red. Passing of bundles of shares between different nominee accounts (X-trades). Stacking with fake orders (I remember when GXY at its high had a 2 million sell order at $12, all designed to give the impression the board was overweight with sellers). The ability of institutions but not retailers to buy and sell shares in small numbers at no cost penalty, and their ability to trade out of hours. The willingness of some funds to help another fund cover even though this is to the disadvantage of people invested in that fund. The list goes on. Man, I have seen it all these past 2 years.
It is a disgrace that the ASX is being allowed to operate as it is and that there is no proper oversight by ASIC. disallowed is meant to be a place where companies can raise capital so they can undertake projects that will benefit its investors, but has now become a place for quick and easy profits by banks and institutions. People are investing their money and heaven forbid taking out margin loans to invest in good companies that are being shorted to hell for no reason other than the banks and institutions are allowed to get away with it. Imagine what this is doing to Superannuation Investment Accounts and what this will ultimately mean to the Government when people retire with inadequate savings.
The Royal Commission into the banking and financial services industry was a good thing. But I predict the findings of that Royal Commission would be overshadowed by what they would find if there was ever a Royal Commission into the ASX and role of banks in its manipulation. How I would love to see this happen!
