LYC 1.82% $7.84 lynas rare earths limited

I always read a lot of whining about short selling. Without...

  1. 176 Posts.
    I always read a lot of whining about short selling. Without short selling there would be no money for high risk projects. Lynas wouldn't even exist. They started with a couple of million shares ending up with over 2.2 billion securities and still counting. Most of these shares were underwritten by banks that have the obligation to hedge their involvement by short selling.

    Worse than short selling is the communication policy of the companies that don't disclose any details of operations until there is a final result of either profitability or bankruptcy/endless dilution.

    Lynas has carried a great product into a market that has almost killed itself. They have been too slow to profit from the rare earth bubble and right now there is absolutely no hurry for anyone to speed up until RE prices recover.

    Short selling activities tell me one thing: the company will live thanks to further liquidity that unfortunately involves dilution until a state is reached that most of us have been waiting for years: profitability.
 
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