Understanding the enemy is one of the most potent weapons in your armoury! Working together to fight back is important.
Why have we seen so many downrampers in recent times?
I have seen posts with a lot of facts showing the borrowings of "shorters" and the fact that when we (ADN'ers) entered the ASX500 we attracted the attention of these, for want of a better word, Wolves into our midst.
I'm sure there are smarter people than me amongst our group, so I hope that this is not too boring or "stating the bleeding obvious", but the main thing to understand why the wolves (shorters) want to drive the price down (at great cost and any cost to others) is simply that is their method is making a profit.
They borrow shares from a broker and sell them immediately. So let's take ADN as an example:
Firstly they look for shares that have had an extraordinary spike in SP (like when we
went from +/- 30c to 45c in a couple of days.
They borrow shares from a stockbroker at an agreed price and sell straight away (let's say 40c in this case and let's use 1m shares as the amount of shares borrowed) this is a value of $430,000 sold against a debt of 1M shares.
Then as a pack they work together to cause doubt, make holders question their own sanity, create panic selling, trigger stop loss limits. The chose a stock that had massive growth and where most of us expected a retrace, so they already knew the price would come down, but by attacking as a group on every media outlet they want further decline in the price and they don't need to provide facts, they just need to create doubt and fear.
In the case of ADN they drove the price down to +/- 27c (I stopped looking after awhile).
So their gamble is to judge the best time to buy another 1m shares, but for our example let's say they bought 1m shares at 27 c ... this cost them
$270,000 ..... they give the 1m shares back to the broker and they pocket the difference between $430,000 and $270,000 = $160,000 profit.
I am not sure why this is allowed because it is almost like pirate action and there are so many unsophisticated and unsuspecting investors who could lose massive amounts, supers/pensions etc., because of these Wolves.
As few wise men and women have commented lately, the very best way of combating this enemy is to ignore them. Don't give them the oxygen they require to spread their agenda/narrative. LETS MAKE A PACT THAT WE NO LONGER REACT TO THEIR BS. WORK TOGETHER TO SMOTHER THEM AND REMEMBER ADN HAS NOT CHANGED ITS COURSE ONE IOTA WHEN ALL THIS HAS BEEN GOING ON.
I will try to post link that explains shorting in simple terms.
GLTAH
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