One thing is for sure: The shorters would not have piled shorts on like that unless they knew bad news was due for imminent release or there was a large distressed seller coming to market.
So far no sign of either. If they were banking on more dumping by CBA or Barclays, they could have a problem and must now be hoping for the US markets to tank. Of course a very large cross (by the ferocity of the sell down) could be being negotiated behind the scenes and might happen after market.
Last year IOF reported on the 25th. Seems a little distant to be shorting so heavily earlier this week unless they are getting REALLY bad results (hard to believe from recent prospectus) and getting it this week?
Shorting so close to the recent raising price when IOF has not had much of a run seems brave based on technicals alone.
IOF Price at posting:
$1.88 Sentiment: None Disclosure: Held
