Looking at gross shorts yesterday the price drop seems to have been driven by short sales transactions which were 13% yesterday.
Perhaps comparing this to rio provides some insight?
While shorting levels on fmg are generally similar to rio with short trend up 9% over 15 days for both, rio price trend is +9% and fmg -3%.. but fmg is ex div of ~6% or ~9% with franking so overall a 3-6% difference between rio and fmg.
The key may be the volatility that seems to be driven by fmg shorts possibly because it is perceived as higher risk, has lower institutional support, and lower LVR. This provides a trading opportunity for big and small. It allows profitable trades and hedging both up and down which in turn supports increased volatility and provides a mechanism to influence price appreciation.
It will be interesting to watch rio over next few days, ex div tomorrow...
https://bizpep.com/shortsales/?code=FMG
https://bizpep.com/shortsales/?code=RIO
Looking at gross shorts yesterday the price drop seems to have...
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 (20min delay)
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Last
$25.59 |
Change
0.830(3.35%) |
Mkt cap ! $78.79B | |||
| Open | High | Low | Value | Volume |
| $25.09 | $25.59 | $24.82 | $182.9M | 7.212M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 7000 | $25.55 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $25.59 | 108 | 1 |
View Market Depth
| Last trade - 16.10pm 26/04/2024 (20 minute delay) ? |
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Last
$25.53 |
Change
0.830 ( 2.88 %) |
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| Open | High | Low | Volume | ||
| $25.05 | $25.58 | $24.83 | 1579176 | ||
| Last updated 15.59pm 26/04/2024 ? | |||||
| FMG (ASX) Chart |