Those small transactions don't look genuine.A lot of them are...

Those small transactions don't look genuine.A lot of them are cross trades...maybe the buyer and seller are the same. There was a report recently that Matrix had the largest %age increase in short sellers (see FN Arena Oct 16). If anyone can explain what all these small amounts
of shares traded are trying to achieve, I'd be grateful. I imagine that they are intended to incrementally , bit by bit, bring down headline sale price...and make the market think the price is falling more than it otherwise would appear to and thereby create an avalanche . It could be a ploy to reduce market price so that a predator could refer to how low the share price has been trading. Conceivably there could be a predator trying to massage down the price..Any big player in this space will be very well aware of the huge amount of business that will become available in the near future.

Although confirmed orders are low, thanks to the recent share issue gearing is also low. Matrix have taken the right decision to adjust shifts etc . They still have $73 mill orders to fulfil. Conceivably there could be a predator trying to massage down the price. Quite why short sellers ( without a takeover ulterior motive) should target Matrix I do not know. Matrix has the flexibility to manage current circumstances and it has a record pipeline. These shorters are either stupid or this is part of a grand plan.

Quietly, there is a boom going on in rig ship orders (hence the $1 billion pipeline). I have a schedule of nearly 60 UDW rigs ordered and not yet built.. Yes, there is competition...but currently only two meaningful competitors worldwide. Yes, the strength of the $A is high ....but Matrix has a natural hedge as it buys much of its material in $US. In view of the large imminent requirement for DRBMs , the new Henderson facility has the efficiencies and capacity to absorb the possible rush of orders.

Why aren't the orders materialising yet I ask myself ? My guess is that the ordering of DRBM modules are seriously considered by the acquirer at the end of the rig building process. Whilst they appear to be an essential part of the drilling capability the lead time to manufacture is such that their ordering can be left towards the end of the rig building cycle.

My guess and hope is that we shall see the day that MCE earns 40c per share +. However, there are no guarantees .