AJX 0.00% 1.3¢ alexium international group limited

TA discussion, page-6287

  1. 5,998 Posts.
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    I have been watching the short tables and have been a little puzzled by the lack of shorts on AJX, i.e. zero.
    It can only be one of three things;
    1. AJX is too small for the big boys to short or they can't borrow the shares to do so?
    2. The drop in the value is some form of controlled drop not based on fundamentals?
    3. There is an expectation of good news at any time, thereby placing a major risk on shorting teh stock.

    But even then with all the negativity about the SP etc, there has been no Short sales recorded, (or very minimal)....why? This stock would have been a shorter's dream, sell at 56c buy at 12c, constant 'bad' news (or no news )...The Brokers apparently have sold through their holdings, they had the ability to loan out the shares to shorter's and they didn't.....So #1 is not correct

    Whilst I believe there is manipulation in the ASX, we would have seen the shares going to insto's or brokers which does not seem to have happened, so #2 is probably not correct (although I still wonder about the co-relation between certain posters popping up and the SP dropping at the same time)

    That leaves number 3....The shorter's worst nightmare is a Stock that may receive good news at random times that materially changes the markets sentiments towards that stock. Financial info released at predictable times is what the shorter's want, not a rapid increase in a stock that forces them to cover in a rapidly rising market. This to me would be the reason I would not short AJX, positive news about the military contract will send this stock to the moon in a heartbeat, as a shorter you are betting that it won't happen within your short window, that's a 50/50 bet. On top of that any other material contract will do the same, so the odds are starting to be stacked against you.

    My 2c worth, I know nothing and DYOR
    Last edited by gsad1000: 06/06/18
 
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