Australia's largest stock trading and investment forum Australia's #1 stock forum

SYN synergia energy ltd

0.00%

0.1¢

CR with Darwin, page-9

First 9 Last

Share
Profile

Follow
retiredyoung

8,751 Posts.

782

16/07/14

10:38

Post #: 13666146
Share

Originally posted by Roger1 ↑

Is this possible (http://www.lse.co.uk/shareprice.asp?shareprice=oex&share=oilex)?

"The catch is that Darwin typically short-sells shares of the listed company in the open market just before a draw down occurs. It then gives the short-selling proceeds to the listed company in return for shares, and then closes out its short position with the new shares issued by the company. The end result is often something what Darwin’s chief executive, Anand Sambasivan, calls "risk neutral", whereby Darwin has limited or no exposure to shares in the listed company despite just giving them hundreds of thousands of pounds in exchange for an equivalent amount in shares. Darwin profits by taking a percentage cut of the transaction, plus whatever it can make from the spread between the short-selling price and the issued price of the new shares. In addition, Darwin is usually issued warrants when signing the EFF, so if the listed company’s share price were to rise afterwards, then it could make money on those, too." The actual sale price of the shares is entirely irrelevant (to Darwin). They make money regardless.

IF the above is correct then manipulation is alive and well!! Oh for a Regulator and Regulator.

Expand

Hi Roger1

My understanding is that it is possible to 'naked short sell' if a person selling products has, at the time of sale, a presently exercisable and unconditional right to vest.

RG 196 - Short selling

OEX Price at posting: 12.0¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

AII

Inside the depths of Panasqueira: A legacy carved in rock

USL

'Defining moment' for Unico as miner expands Joaquin's mineralised footprint

ASX Market Open: Trump has quickly turned into the boy who cried tariffs | July 15

Listen: HotCopper Wire Podcast 017 – RBA holds the toppings

ASX Market Close: Iron ore prices stay strong; US CPI data due Tues night

First 9 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.