something in the order of 130m shorts which are on red light and require to be covered; obviously ETF , index red taped funds will be selling down , individuals whom want cash out for a host of reasons will be selling down regardless if ML is issued or not and a huge bait ball will ensue; seagull traders will hold until they feel a bottom has been reached before moving in and buying back up ; EX / Current holders with dry power will likely do the same ; funds not anchored to indexes , new investors whom now see value with ML in hand will also move in trying to pick the lows or a point where they feel comfortable with.
There will also have been some prearrangements made between brokers for exchanges no doubt which will cut on market available sales volume. Even though this thing will head south in my opinion , I reckon you'd want to have a lot of balls to open a new short position ( so decent volume of new shorts sales is highly unlikely) , as its likely to whipsaw around pretty quickly.
400m tonne and rapidly growing, high grade hardrocker with a ML in hand and in the $2b bracket, CAT on board and highly likely of large players to the table after ML ..... there will be a lot out there whom will see great value . It will be a nervous day for retail shorters imo ; some will have made good money on the down and I reckon many shorts will just want to buy those shares back up ASAP and throw they back like hot rocks, into the recall bucket .
i reckon some shorters will be feeling like right baitfish once this thing opens ; not a lot would have gone through this experience before with the value largest hardrocker on the planet and a ML thrown into the mix.
There's a lot of volume to go through , but how clever are you ; will be the question IMO
AVZ Price at posting:
78.0¢ Sentiment: Buy Disclosure: Held
