On Friday we saw over 210 million shares change hands in Lake Resources, which confirmed that the ASX300 removal on that day resulted in a re-balancing by Index Funds and thematic ETFs. So, in addition to those 50 million+ that were registered shorts, one would have to consider that, taking into effect the roll overs of inter trading, maybe over 100 million shares were still held in those Funds? IN ASX300!!!!!! So, when LKE was dropped from the ASX200 effective from 18 September 2023, 102,433,967 traded on 15 September 2023 and still traded around 16.5 cents.BUT, LKE remained in ASX300 until yesterday, and, probably continually, since March 2022, with many of those that were sold yesterday from that bunch!!!! A MAJOR investment fund, very popular for superannuation investments!!!This same company that was "promoted", not just to the ASX300 in March 2022, but, even HIGHER, to the ELITE ASX200, Australia's NUMBER ONE international investment platform, six months later!! The same company that had no income, no proven processing source, no guaranteed power source, no guarantee that they will be producing for another 3 years and no idea what, if any, equity they will have in their only known possible source of revenue, EARNINGS!!!! Much of the investments in ASX300 would definitely have been Superannuation SAVINGS. The "savers" would not have had much choice about their savings going into a highly reputable, popular, Index Fund. How do the S&P and ASX Index qualifying criteria stand up in light of what HAS HAPPENED to that investment in Lake Resources by those Index Funds and ETFs, satisfied by the status provided by them satisfying such internationally recognized institutions?? The ONLY criterion that LKE satisfied was Market Cap (they say that volume is also seriously considered) check out LKE's Market Cap and volume BEFORE March 2022 when Lake QUALIFIED for promotion. Check out its "volume" prior to March 2022, and, except for two major days, has always had VERY modest volumes..The very promotion to the ASX300 caused massive funds to be (mandatorily) poured into LKE shares by those Index Funds and ETFs, and the SP went from a steady 90 cents, to a dollar, to over $2.60. PLUS the 71 million that State Street bought, and they bought at the HIGHEST price. All of which BLOATED the SP to also bloat the Market Cap which proceeded to have them further promoted to the elite ASX200 six months later!!! Both were classic self fulfilling processes which turned into a catastrophe for genuine investors, who have ultimately had over $3 Billion wiped off the value of their investments, and much of that would have ended up in shorters'and short brokers' coffers! The harsh consequence of that was that two major international institutions, State Street and JP Morgan, built up holdings of over 140 million of Lake's shares and commenced an orgy of shorting which has now lasted over 2 years and has shattered LKE's retail trading and SP. And that's not counting the massive damage that has further been imposed by smashing Lake's ability to raise funds without further slashing the SP and further diluting shareholders equity!!! Their current CR is at a 39% discount and the SP has dropped over 90% in those two years to 7 cents. Leaving emotion and prejudices aside, surely THE story that should be investigated and told would be about S&P's and ASX's INDEX criteria???
