Short Selling

Arrrrrh......I believe this great article in the Weekend Australian may answer and explains some of the questions regarding Gor short selling and what I and some others posters have noticed over recent times (JMT).

http://www.theaustralian.com.au/bus...e/news-story/b4136ae909e58f0e0b0ac18ed9490c10

In particular the article explains the short selling here's a snippet (Van eck held 4.9% of Gor or just over 42m shares, approx Nov 2016).

Van Eck’s solution, announced in April, was to rewrite the rules that decided which miners could be included in the $US3.7 billion ($4.9bn) index. Previously, miners would be excluded if their market capitalisation went above $US1.6bn. Instead, that upper limit was increased to $US2.9bn.

It did not take long for the market to figure out what the changes would mean for individual stocks. Shares rose in the bigger miners that would now be eligible, such as Evolution Mining and Northern Star Resources, as traders anticipated that Van Eck would be compelled to buy the stocks.

Similarly, traders sold positions and started shorting the smaller miners, knowing that Van Eck would also need to sell down its holding to make room for those bigger parties.

According to one fund manager, the market moves in anticipation of the Van Eck rebalance have cost the fund more than $US300 million in value as it buys and sells shares in miners that have already had their prices inflated or deflated by investors anticipating the fund’s moves.

Good luck to all holders

cheers Aussie