CTP 1.92% 5.1¢ central petroleum limited

Botchee,I am not sure if this forum is aware, but Central is...

  1. 100 Posts.
    Botchee,

    I am not sure if this forum is aware, but Central is actually trade-able on the CFD market (contracts for difference). http://www.asx.com.au/products/asx-listed-cfds.htm
    For those who don't know what CFD's are, check out that link.

    The reason I bring this up, is that as Central is trade-able on this market, it must be pointed out that people can actually make money on the share price falling. Good Oil could very well be a specialist short trader. These people emerged as a product of the GFC. Short trading in many ways has become far easier than long trading. He or she preys on smaller stocks who are in similar positions. They look for small cash holdings and upcoming drilling campaigns (fairly simple parameters) and generally trade down on the fear as these are the scariest things in the market at the moment. I know many people doing this and I suppose it would make sense to bash the hell out of the stock that you’ve gone short on in any forum you can.

    I of course have no proof that Good Oil is in fact one of these traders, but I would say that he or she at the very least discloses his or her intentions... their sentiment is always set to “sell” with “no stock held”, so in many ways that is more indicative of someone who has never held the stock but somehow trades it. You wouldn’t post about a stock without holding so what else could it be? Short selling enables you to actively trade a stock (and hence more likely to become involved with posting on forums) without ever being on the share registry. It is completely stealth.

    For CTP, as the bad economic data began to emerge once again and Greece became a problem, had just hit a little milestone on it's recovery towards the $0.085 mark. As the stock moved backwards, a short seller could have gone and invested (at only a 20% margin) short (selling the stock) at lets say $0.075 (a 12.5% retrace) and hoped that when a capital raising was announced that the fear would drive down the stock. He or she could be making upwards of 36% profit on the underlying asset, and when you factor in the margin, it becomes 4 times this amount. So a short position of 500,000 at $0.075 shares requires a margin of $7,500 (or 20% of $37,500). the stock now is at $0.048 so the current profit for the short trader is: ($0.075-$0.048) x 500,000 = $13,500. This is over and above the $7,500 initial margin.

    So you can see how it could be beneficial for a person to downramp a stock in order to make money.

    Again this is all my opinion and it requires a few assumptions on my part. Good Oil may just have been burned by companies in the past and is trying to warn others not to suffer the same fate. Those who listen to Good Oil's posts as a matter of financial advice will be let down, as no one single opinion on here can be taken verbatim. You would be wise to always "DYOR" as Good Oil so diligently always ends his/her posts with.

    Anyway, those are just my thoughts.

    RB
 
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Last
5.1¢
Change
-0.001(1.92%)
Mkt cap ! $37.74M
Open High Low Value Volume
5.2¢ 5.2¢ 5.1¢ $21.21K 413.2K

Buyers (Bids)

No. Vol. Price($)
1 914693 5.1¢
 

Sellers (Offers)

Price($) Vol. No.
5.3¢ 109110 3
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Last trade - 15.48pm 25/06/2024 (20 minute delay) ?
CTP (ASX) Chart
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