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17:34
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Originally posted by madamswer
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While I am sure that the company's management have contingency plans in place to whatever the final recommendations of the Royal Commission on IOOF's business will be, the ultimate outworking on the company's earnings can't be known.35m shares have been borrowed and shorted .1.4m shares per day .40% [*] of Average Daily Volume would require in excess of 60 trading days to neutralise the net short position, so the better part of 3 months .[*] And participating in 40% of the trade day-in, day-out for 60 successive days would be no mean feat and, for practical purposes, would be very difficult to achieve without a meaningful impact on the share price. For context, 10% to 20% of ADV is what institutional brokers are typically mandated to do by their institutional clients when it comes to on-market buying or selling, depending on the stock in question.
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Well with George implying they will endeavour to keep the dividend stable, they obviously aren’t exactly haemorrhaging cash, and thebduerctors won’t want to let the shorts out with an easy exit and allow their own holding to be diluted.
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