Who's been buying?, page-6

The short selling on Arrium has been strange and amazing.  Prior to the rights issue the number of Arrium shares short sold was 55.4m shares.  Just a couple of days later, at the peak on 24th September it rose to a massive 156.8m shares sold short.  Yet the latest figure which came out today shows the short selling at 25.5 million as of 6th October less than half of what it was prior to the rights issue.  These figures are accumulated and four days prior to the current market but the one day short selling yesterday was a large 15.8m when the total trading was only 38.6m shares so the short sellers are going in and out in a massive way but they tend to be out rather than in right now.

For those who haven't seen them, the two main short selling sites are at:

http://www.asic.gov.au/asic/asic.nsf/byheadline/Short position reports table?openDocument

http://www.asx.com.au/data/shortsell.txt

another good short selling site is http://www.shortman.com.au/stock?q=ari

and it shows the strange changes in the short selling of ARI but keep in mind that the change in the total shares because of the rights issue has had an effect on the graph.

So if the short sellers are not causing the very low ARI share price who is?  I think the answer must be that some of the big institutions which took up their rights may be taking out their losses so they don't have to keep showing them to their customers!  Fund managers don't like to have big losers in their holdings as it makes them look bad  

I am one of the punters who has been buying Arrium and I think it has a good chance of charging back upwards provided there is no problems with the underwriting.

GPASAS