So the reason GXY is the most shorted stock has everything to do with its high institutional ownership. The share price would likely be a lot better therefore if there were more retail holders...wary1 said:
Hi wary1, It seems that the 5:1 consolidation, had a lot to do with the whittling down of Galaxy’s retail shareholder base.
I remember reading posts from retail holders at the time, when we were all discussing the proposal of the 5:1 consolidation, and many seemed to be quite disgruntled, that it was being proposed, and that it was likely to be voted for; at the AGM.
Many shareholders seemed unsure, as to whether they should hold, sell or whatever else they should do in relation to this matter.
It was being viewed as losing its penny stock status in the market; which would have moved a lot of traders on to other penny stock hopefuls or dreadfuls in the vicinity.
Management did have their reasons for initiating the consolidation at the time: a tightening up of the register, Galaxy would no longer be viewed as a penny stock; a strategy that it was hoped would stem the bleeding of the share price from shorting, a possible listing on overseas exchanges over the next 6-12 months. Attracting more institutional investors.
It was always going to be a wait and see scenario, to see how this consolidation strategy would pan out, going forward.
And now we can see what happened!
I remember being shocked, while reading through some of the later reports, and seeing how much retail shareholdings had dwindled, in relation to the high institutional numbers, that we were subsequently seeing.
Some of our impressions were; that management may have been more guarded, or secretive, about releasing any further information, other than what was contained in quarterly/ annual reports, in order; not to give the high institutional register, any more additional ammunition to continue the shorting, and the sensitive nature, of the discussions and negotiations, in regard to SDV.
It always looked like a situation of management being damned if they do-damned if they don’t. As no matter what they did, this was the result in the short term.
There will be a resolution of this situation, in some measure, over time, in which we are speculating, that we will all become somewhat richer in the future.
It would have been interesting to have seen the result of a non consolidation, and what the trading in the Galaxy, would have looked like, and compared against what we are currently seeing.
Just some of my memories, and impressions of some very challenging times in the Galaxy.
GXY Price at posting:
$1.53 Sentiment: Buy Disclosure: Held
