"Well, there could be three scenarios:"There are not sufficient...

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13/02/24

14:25

Post #: 72382424
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Originally posted by Happ: ↑

Well, there could be three scenarios:

1. Brokers for instos / sophs created at least 90 accounts prior to recording date. They will now suppress the share price to discourage others from participating in SPP and then help themselves to another $9mln shares which would come with two options. Effectively, they would have 40% shareholding. They would then choke the price so it goes much higher and onsell their massive holdings to say US investors.

2. Or brokers for instos / sophs can go completely feral and short sell it to the ground level and cover their shorts when the placement shares are issued.

3. Or they could combine both scenarios and make an absolute motza.

Sums up the dire state of the regulatory regime.

We shall see the outcome in a few weeks.

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"Well, there could be three scenarios:"

There are not sufficient shares available to borrow to enable large scale short selling. There are no significant institutional holdings, which tend to be the main source of borrowed shares. So any talk of such scenarios is hyperbolic in the extreme.

As of yesterday total short positions amounted to 0.03% of issued shares, up from 0.01% on Friday - constituting maybe a tenth of yesterdays trading (going on memory as the ASX site appears to broken and not showing yesterday's trading ATM).

All IMO.

BLG Price at posting: 3.5¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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