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clock Created with Sketch. 16/01/15
15:39
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Originally posted by shadowboxer1
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Ok Cudeco's a dog that's why its shorted so I looked at another company Acrux, earnings per share in 2014 17 cents, paid 96 cents of dividends in the last 5 years. Shares on issue 166.5 million, 19 million shorted or about 11.5% on issue. Short trading accounted for 36% of the volume traded on the ASX in December. With volumes of around 9 million per month it would take 2 months to close this positions based on the ASX volumes with no other trades to close these position using 36% of trading would take about 6 months and would send the price soaring. These guys could find the cure for cancer and they will still be shorted because its nearly impossible to close those positions. Shorting is like diabetes once you have it there's no cure just management. If a company had 50% of there shares shorted it would account for 100% of its trading to open and close those positions prior to the GFC there was a company on Wall Street that had 107% of its shares shorted and during this period the SEC supported Naked short selling, they got that wrong so who is to say they still haven't got it wrong.
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Shorts can also be covered through placements or conversion of options - the other stock I posted on BRU had 6m shorts covered off market last year coincidentally just after a placement was completed - To assume 9m shares have to be bought back on market is wrong (IMO)TOP SHORTED STOCKS
Column 1
Column 2
Column 3
1
MYR MYER HOLDINGS LTD ORDINARY
17.84%
2
UGL UGL LIMITED ORDINARY
12.38%
3
ACR ACRUX LIMITED ORDINARY
12.15%
4
MTS METCASH LIMITED ORDINARY
11.86%
5
SUL SUPER RET REP LTD ORDINARY
11.54%
6
JBH JB HI-FI LIMITED ORDINARY
10.78%
7
AGO ATLAS IRON LIMITED ORDINARY
10.27%
8
RRL REGIS RESOURCES ORDINARY
10.25%
9
COH COCHLEAR LIMITED ORDINARY
10.02%
CDU == less than 4% short
Last edited by
h00ts :
16/01/15
