RMD 0.49% $38.40 resmed inc

Shorters should be loved, not loathed

  1. 7,936 Posts.
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    On many threads, anti-shorter rants can be heard being blamed for share price woes.

    Me, I take a diametrically opposite view: last month’s shorter is today’s buyer when they move to cover their short positions.

    Take RMD, for example: over the 12 months to May 2014, net short positions in the stock rose by around 110m shares (out of a total number of issued shares of 1.4bn, so around 7.5% of the total issued capital).
    Over the past few weeks, shorters have been net buyers of around 44m shares to close out their positions.

    The result has been an 19% increase in RMD’s share price.

    The point being made is that shorters ultimately become buyers of stock.

    The reason I like shorters is that they play a very important role in getting overvalued shares return to their point valuation equilibrium (and often below it, which creates opportunities for discerning buyers).

    Which is what happened to RMD: the short-selling of the past 12 months created a fantastic buying opportunity in RMD in the earlier part of this year.

    Shorters provide a valuable price discovery service to me.

    Long Live The Shorters.
    Viva The Shorters, Viva!
 
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Last
$38.40
Change
-0.190(0.49%)
Mkt cap ! $22.38B
Open High Low Value Volume
$38.40 $38.58 $38.30 $19.94M 518.4K

Buyers (Bids)

No. Vol. Price($)
2 906 $38.39
 

Sellers (Offers)

Price($) Vol. No.
$38.49 313 1
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Last trade - 16.10pm 29/11/2024 (20 minute delay) ?
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