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reasonable expectations, page-4

  1. 5,948 Posts.
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    Yaq..you said..

    btw - (20% of sales being shorts means 40% of all transactions are involving one party - for every short sale, there is a corresponding re-buy at some stage. Easy for a large holder to push a share around, and then claim it is 'sentiment'.)

    That means the maximum amount of shorting would be 50% and would represent all trades were shorting inspired and zero actual longs selling to genuine new buyes. As % short gets above 35% you can see how exponentially difficult it is to get to 50%. And yesterday was 40%

    Well then yesterdays 40.46% means 70.9% of all round trip trades were inspired by someone who borrowed shares they did not have in order to sell them.

    Correct?

    So, who would have a lot of shares, say 19.9% worth that could lease them out and make some money on the leasing, and then (although actually suffering a loss on an estimated $500m) make an offer on 80.1% of shares based on a lower price. Wink. You can see how leverage here works. Of course all legal because the original shares owner who leased them says ..hey..not my fault look at my paper loss!

    Pathetic really. Blatant manipulation in plain sight.

    The leverage is x4.(80.1/19.9) So for every 1 cent drop 4 cents is saved.

    Assume $xbn MC for the 80.1% not held. plus assuming, and I don't believe it, a VWAP+40% formula)

    so ($xbn +40%) X 1% drop minus ($xbn/4) X 1% drop

    is the benefit of shorting.

    plug in a number, any number, but say $0.8 bn for the total MC, so 80% = $0.64 bn

    The saving per percent price drop is about $8.5 m per percentage drop. (not including the benefit of the leasing fee.)

    One percent is actually 1.25 cents of share price, but you get the idea and you can see why there is motive.

    Driving price down from the Cap raising at 0.84 to say (just picking a random number) 0.75 saves about $80m.

    Especially interesting that a VWAP of 75c +40% formula is about $1.06 sp. A 0.75 sp guess was interesting hey. Anybody we know pay that $1 for their shares??

    Surely its not that obvious is it???
 
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