I can’t see the various arguments in the threads tonight that...

I can’t see the various arguments in the threads tonight that todays’ action was because of shorters, or because of a capital raising or manipulation.

I thought today looked like genuine selling by funds who had otherwise been trapped in the stock.

The Lynas register is dominated by institutions. Many of these funds would have adjusted their portfolio allocations over the last 6 months away from the resources sector towards other sectors with the commodity cycle past its peak. You can see it in the distribution patterns apparent in a number of other resource stocks that this has been occurring.

However in the case of Lynas any fund that needed to reduce its exposure over the past few months would have been trapped with the low price and low volumes going through. If they were stuck with drip-feeding the shares out over recent weeks that would explain the depressed share price, and then today certain funds would have taken the opportunity to exit on the news and high volume.

But if this is the case it’s nothing to do with the company, just normal portfolio adjustments out of resources generally. There’s no telling when it might end or if there will be more selling into any rallies, but the positive is we had 60 million new buyers today who will be more likely to hold and build positions. I’m very relaxed about this process as I’d rather see the stock climb slowly and steadily rather than all the volatily.

A 6% rise isn’t bad on a day when everybody already knew that the appeal would be dismissed, it was just a matter of timing. If the SP rose 6% every day we’d be at $1.60 by the end of next week.