Hi CEB2, its an interesting observation and most grateful for you sharing it with us, and the trading described seems to have similarities to what has been happening in RED's share price over a similar time and price performance.
Whilst I have traded shares for more years than I care to remember, I still don't know if any company such as RED has shares available for "borrowing" which I think is the primary premise of Rexi98's argument. Its interesting though that we have had those recent substantial shareholding notices re Merrills and Bank of America which I wonder could have something to do with a possible source of shares to be borrowed.
I guess the comment that Rexi towards the end of his post is that there is only one way to put a stop to the process (for how long is hard to say) is substantial buying pressure. I have confidence that over the medium term RED will outperform the general market, and therefore may force its removal as a target to this practice IF it in fact is happening now. Surely once a company is outperforming then its attraction to such trading will disappear very quickly!
With gold moving up the last day (latest being spot US$1,117/oz), and a possible increasing level of interest in gold by the chinese government which has been rumoured the past day, hopefully it will put some fire into gold stocks running again, and RED should be an outperformer.
Keep those computers honest is what I say!
RED Price at posting:
$1.15 Sentiment: Buy Disclosure: Held
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