This stock does what it did in the past. There will be no real bottom until the shorts run out of cash or there are enough institutional buyers to pump it back up and cause the shorts to cover. It will be a violent jump in stock price when this happens. It could happen relentlessly over several weeks causing the price to jump between 30% - 75%. There is nothing retail longs can do but watch it with a grim face or buy more slowly and wait. The ones who buy on borrow money will probably crash out and lose it all. Those who can feed this beast will reap huge rewards within 3-12 months.
Today the shorts get nervous as the world markets seem to stabilise a bit after several bank rescue attempts. The shorts probably will have to cover their positions on the Australian banks for the next few weeks. Lynas is probably a bit down the track. Perhaps, those cashed-up retail buyers should thank the shorts for the opportunity to get in at the current level.
LYC Price at posting:
$6.40 Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)