norbita, I agree. I'm sure this was being faux-shorted (as much as you can on the ASX these days, lol) and today could have been the close out of the short.
However, I'm not 100% sure that this is the end of the troubles for MOF. I agree with zzzzzzzz1, there's more bricks and mortar value under the surface of the very thin share price, its just how do the Maccas boys unlock it?
i also would agree with Michinyon that hedging is useless and destructive. its just taking f-ing bets, and these guys are being paid commissions to just assume some crap, toss together a model, and write up a billion dollar interest rate swap contract which then catches on fire and burns whole companies to the ground.
Odds are there are ticking time bombs out there. I would be surprised if there aren't. For instance, over at ABY they've failed to admit to a $45M black hole on a modest $135M @ 86.6c US/AUD currency rate swap. To a company with $2M cash in the guts of a mining disaster and facing $109M of QP losses, its ridiculous that they haven't declared this loss.
Anyway...I distrust shorts and CFDs in this market. in my opinion, you go in naked with real securities you own, or you don't go in at all.
MOF Price at posting:
9.0¢ Sentiment: Hold Disclosure: Held
