LYC 0.34% $5.93 lynas rare earths limited

I am quite sure that the only reason for the unreasonable...

  1. 766 Posts.
    I am quite sure that the only reason for the unreasonable behavior of LYC SP is because some hedge funds who are short LYC have a big problem. There is no other reason for the SP to be blocked and pushed down when the whole ASX is rising and Lynas had recently only good news. It would have been much easier for a neutral hedge fund to make money by pushing the SP upwards then to push it downwards where it get stuck at about 60c. There is no big money in these tiny moves it makes recently.

    But one thing is obvious. There are strong participants who invest a lot of effort in pushing the SP downwards each time Lynas has good news.

    I have only one explanation to this behavior: these participants are stuck with a huge short position that could be even larger than 100M shares short. They cannot cover such an amount without causing the SP to rise steeply and they cannot lower it much further down. So the least they can do is keep the SP low and cover their short slowly. However, they are quite at their last moments because a good production announcement could come any day now. Once LYC is de-risked, the situation will change dramatically. Instead of a bunch of frightened-demoralized retail investors who currently support the SP from the long side and who are easy to manipulate, some large institutional investors will also enter. This will change the dynamics of LYC SP entirely and the shorters will be forced to cover at high prices.
    This is my only logic conclusion from what is going on now. Please correct me if you have better explanations but don't bring this nonsense about covering with dark pools.
 
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$5.93
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Last trade - 16.10pm 28/06/2024 (20 minute delay) ?
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