Personally I think short selling is immoral as whilst it does create a market it allows manipulation and artificial control of the share price. I will personally not go down that path. If I think the price will drop I will sit to the side and wait for a re entry. In the US (but not Aus) naked shorting is allowed by market makers which means they can sell shares without having to borrow them. If you look at the numbers 24.4m are short at present. 42m of the 69m UNIS available are held by instos and the inside management own most of the balance (couldn't find the exact figures but AS has just under 11m himself). That doesn't leave much free float for them to cover with, certainly less than what is presently short. Many talk about a short squeeze driving the price up. The numbers would have you think it inevitable, but I think they are too smart for that and will have some form of exit strategy.
As for insider trading, AS runs one of tightest ships I have seen. All of the recent major announcements have come out of the blue with no forewarning on the charts in the lead up. That to me is a good sign that insider trading is not happening within our side. If anything does occur in future I expect it would more likely come from our client side. Our whole business model is based on confidentiality - any slip ups there and we could have some problems.
UNS Price at posting:
70.5¢ Sentiment: Buy Disclosure: Held
