That’s a good explanation @TheAnalyst007, and I have not...

That’s a good explanation @TheAnalyst007, and I have not previously heard or seen it explained in this much detail, so sincerely thanks. I do see the point in what you are saying.

It is just quite frustrating that there can’t be some detailed research into the whole dilemma with a view to create solutions. My belief is that despite shorting having the unique job of being a check in place to counter the ‘bubble’ you speak of, where it provides liquidity and price discovery, which as I said, I do see the point in it, unfortunately it seems to have got out of hand. IMO, the reasons for allowing shorting in the first place, have now become more of an impediment. Price discovery for many companies is not occurring in the manner in which it was intended.

Take LTR and PLS. Both these companies IMO should be much higher in their SP. Yet they are not. Why? LTR is not correctly priced right now. The down rampers argue it is overpriced, but it is currently much lower than what it was prior to the first offer by ALB going public. When they were nowhere near production. Yes, it can be argued re the financing issues, cost blowouts etc., but these are teething issues only IMO. How is the price now when LTR is about to produce to its tier 1 off take partners reasonable, compared to other lithium hopefuls who will not be producing for years, yet have the the same SP/MC or higher? It isn’t reasonable. It has been manipulated for reasons not yet manifested and available to us for whatever reason, and big names like State Street etc. are taking UNFAIR advantage of this IMO.

A poor analogy perhaps, but I look at the idea of shorting a little bit like the cane toad. It was introduced as an invasive species into QLD to assist the sugar cane industry’s insect pest problem. It initially assisted and did it’s function, but those little critters bred faster than rabbits and ended up becoming a much much larger problem for the entire QLD eco-system, which far outweighed the benefit sought regarding the sugar cane.

Shorting seems to now be endemic, where without some form of control, it is left to reek destruction in the market. I read a story over the weekend about how the numbers of listed companies on stock exchanges have shrunk enormously over the last 10 years or so, especially the US markets. Some figures quoted were ‘reduced by thousands.’ So many previously listed companies were going from public to private in record numbers, and newly formed companies were choosing to not list. Yet, there did not seem to be any big reason identified.

Is it possible, that given what has been happening with big ruthless companies like GS, JPMorgan, Citi, State Street etc., going about their merry way infiltrating some of the biggest and most promising companies like cancerous tumours, that companies have become fearful of being shorted to death and decide to escape the carnage, or not venture into this war in the first place? Is this the reason why many now go private? Shorting is not an issue for private unlisted companies and operates purely on publicly listed stock exchanges.

The whole market monetary system and policies need serious debate at high levels, as IMO greed and manipulation has become so entrenched it is beginning to alter the market landscape, and now seriously runs the risk of making the markets that much less attractive for investors. At the end of the day, it is investors that provide the fuel for publicly listed companies to thrive and grow. I believe shorting should be controlled and used as a tool for the markets only, to make the markets efficient and honest, NOT to be used as a whole investment strategy in its own right.

There is a big problem and it is only going to get bigger and more destructive.

GLTAH.