Perth Good Oil Conf STX Audio 2019, page-118

Hi Everyone,

Good luck to all of you - I have a few investments I think will do well this year, but of them all STX really does seem like the most asymmetrical opportunity for risk/reward at this stage - which is unusual for a speculative play.

The below image is a view of the ownership of STX. It shows that as a group we are in an interesting position where we do have influence on the STX share price.

I expect STX will rerate upwards as the news flow continues and the fundamental value of the company is further represented into the market cap, but the rerate upwards will be dampened by people rightfully taking profits or people deciding to risk coming in and out of the trade to shave a few $. All that is fair enough and each to their own - and we have no influence over this as a group of shareholders. Where we do have a surprising amount of influence is in controlling the shares available to lend to people/professionals trying to short the stock for a reversion trade.

Check with your brokerage firm either online or via phone that your shares are not available for shorting if you want the shorters to have less influence on our price. This is probably one of only (zero cost) planning things you can do to influence your final return on your STX investment. It would just need to be done before we do have our next leg up.

My shares alone (at times) would be 2 levels of movement in the share price. I am sure as a group we can heavily influence the impact of shorters being able to short this stock which will result in STX maintaining more of its gains next time we the share price is rerated up.

If we do find a 20% or more one-day gain in share price you can be pretty sure that on the face of it technical analysis will suggest STX is a shorting opportunity. It will only be an opportunity if the shorters can borrow the shares.

A couple of days ago I posted some information on how shorting works here:
https://hotcopper.com.au/posts/40395781/single