Breakout, page-297

@iminvestor

the VE approach makes sense.  They were buying mid cap gold stocks during the gold bull run last year - and because so much money flowed into their funds - they ended up owning 19.xx% of RSG

If any stockholder exceees 19.9% ownership they are required to make an automatic takeover bid

http://www.takeovers.gov.au/content...mmary_of_takeover_provisions_in_australia.htm

clearly not something they want - they are just a passive investor

this happened not just in RSG but a huge number of other small gold miners - because the ETF attracted huge amounts of money for what are very small sectors

So they will sell significant  stock in this rebalance in order to get their holdigns back to much lower %s of each stock;s issued capital

Yes they knew the impact this would have on market. Yes - almost certainly they lent their holdings out to short the stocks they nominated - so they probably havent lost nearly as much as people think.

Thats also why the lows are probably in most gold stocks if theyve already bottomed druign the period - absent some big shift in gold price.

eg. Shorters will now be removing the RSG shorts as stock is almost back to where it started pre the announcement and there's some gold upside risk from US data.  Getting close to breakeven on that trade.

and obviously VE needs all its stock back on its books by Friday