I don't trust the official short data, 618. I think it's an aggregate of genuine shorting, of the kind reported by Black Rock recently, and fake shorting.
What would a 'fake' short look like?
You set up three 'unrelated' accounts. Account A accumulates stock and lends it out to Account B. Account B 'short sells' the stocks to Account C through mid-point cross trades (which have been ubiquitous of late). These transactions are reported as 'short sales.'
Under this arrangement, Account A continues to accumulate and lend shares to Account B whilst not popping up as a large holding, as this might raise eyebrows of the managers of the target firm when they review the registry.
When it is time to declare you've got 5% of more, Account C 'sells' back to Account B (through a large cross trade), who passes their shares back to Account A, thereby closing out the 'short' position.
All you need to do is come up with a plausible story about the three parties being unrelated (just in case ASIC ask questions about the short sale data, which they never do) . You could run several of these schemes in parallel if you really want to fly under the radar.
Obviously, I don't know whether this is happening, but it would be pretty simple to implement. It would also mean the headline 8% short position should be taken with a grain of sale. Meanwhile, the high short sales figure of 8% has the desired effect. i.e. creating the impression the big end of town is betting against the target firm.
If this is happening, however, you'd expect a large fall in the reported short sales when/if Gina finally declares her 5% stake.
- Forums
- ASX - By Stock
- STX
- Money mine mention
Money mine mention, page-362
-
-
- There are more pages in this discussion • 25 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add STX (ASX) to my watchlist
|
|||||
Last
22.5¢ |
Change
0.010(4.65%) |
Mkt cap ! $643.6M |
Open | High | Low | Value | Volume |
22.5¢ | 23.0¢ | 21.5¢ | $3.339M | 14.95M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
7 | 337869 | 22.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
23.0¢ | 1651352 | 24 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
4 | 130888 | 0.225 |
5 | 84320 | 0.220 |
8 | 683720 | 0.215 |
9 | 638320 | 0.210 |
8 | 417841 | 0.205 |
Price($) | Vol. | No. |
---|---|---|
0.230 | 1476612 | 21 |
0.235 | 945860 | 15 |
0.240 | 655722 | 13 |
0.245 | 311594 | 9 |
0.250 | 3178415 | 17 |
Last trade - 16.10pm 21/06/2024 (20 minute delay) ? |
Featured News
STX (ASX) Chart |
The Watchlist
FHE
FRONTIER ENERGY LIMITED
Adam Kiley, CEO
Adam Kiley
CEO
SPONSORED BY The Market Online