LKE 2.0, page-1675

G'day Stickshift.You say that "This is purely a learning excercise for me - observing the market psychology and naive retail's behaviour."Following on my previous post, and our previous discussion, let's see what turns up in the ASIC short positions report for 15 March 2024 and I hope that we can continue this conversation.Meanwhile, yesterday, we saw over 210 million shares change hands, which confirmed your view that the ASX300 removal effect 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 investemnet 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!!The same copmpany that has 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!!!!

You say that "This is purely a learning excercise for me - observing the market psychology and naive retail's behaviour."
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. Now what a story you could come up with if you did some real digging??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 they satisfying such internationally recognized instutions?? The ONLY criteria that LKE satisfied was Market Cap (they say that volume is also considered) check out LKE's Market Cap and volume BEFORE March 2022 when Lake QUALIFIED for promotion. Check out its "volume".
The very promotion to the ASX300 caused massive funds to be (mandatorily) poured into LKE shares by those Index Funds and ETFs, with the SP going 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 three months later!!! Both were classic self fulfilling processes which turned into a catastrophe for genuine investors, who have ultimately had over $3 Billion wiped of the value of their investments!!
And 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!!!

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???You are independent, you've got the interest and the time, you could develop a great case for a massive class action against S&P's and the ASX. Hmmm.Let's continue when the 15 March short numbers are known and we have all the facts. Have a good weekend.