to my understanding shorting or spread betting doesn't drive the price down. if a company is run badly the share price will go down regardless of whether there was shorting activity.
In PMG's case I think someone summed it up well when they said PMG is a classic example of a strong BoD but weak oil environment.
i don't mind short selling personally. there is just as much risk involved in that as it is to go long. And if its leveraged short selling or spread bet that can open up a can of worms in which there is a lot more risk involved.
I don't see what's wrong with it. it a a free market. I wouldn't personally like to take that risk but i understand that more sophisticated investors like to use short positions to hedge.
I rather just pick companies with strong financials with a lot of cash to be a natural hedge. Also PMG has gas as natural hedge to oil.
YOU, or any other holder here can stop their shares being loaned out for shorting any time you want and it's so easy to do. So if you haven't done it yet your partially to blame for helping the shorter's make even more money.
Mostly " all " Investors these days buy through online Brokers who hold all our shares " on the book " technically they are indeed your shares, but they are held on the BROKER'S BOOK until such time as you wish to trade them. So !! you can stop them being used ( loaned out to shorter's ) in an instant. All you have to do is place a SELL limit order on your entire holding. Lets suppose you own 15,000 PMG.
All you have to do ( you and any other conscientious holder here ) and you can even do it tonight. Is place a LImit order to sell 15,000 PMG shares at a ridiculous price of £2.50 and select a date making the limit order for a period of 6 month down the road, END OF STORY. THEN, you shares are no longer available on the book as there is an order in place to sell them. So technically they cannot " under any circumstances " be loaned out to short with.
I do it systematically with every stock I buy for that very reason. " IF " you ever did decide to sell just go ahead, forget about the Limit order you have in place your sell automatically cancels it out. PMG has such a low volume in public hands that if most holders did this then I would say it would go a long way to stopping this practice.
REMEMBER your broker does not give a hoot about what you hold on his book as he is making money from you and from those he loans your shares out to. However you have the Institutions who also hold vast amounts and want to pick up possibly a lot more at these low prices. So they take advantage of you as well by shorting with your shares and their own massive volumes they hold.Panic you into selling to help them even more and often pick up large volumes of shares for next to nothing when they get the price down to where they want it. Money they make from shorting pays for what they then pick up for next to nowt.. So quicker you get those LIMIT ORDER'S in place quicker you will stop the rot here. GLA
imo, this Cos is being systematically 'shorted' into oblivion! The Cos market cap is now at circa parity with the cash position. Where it up to me, there would be no margin trading or short selling etc permitted i.e. one would either own the shares outright or not at all. Why should my shares be 'loaned-out' by Brokers (i.e. the 'free-float'), to 'speculators' whose sole aim is to drive-down the value of the Cos and by implication 'true shareholder value' - it's scandalous! and in conclusion, I would welcome a Chinese Authority style 'root and branch' investigation of the antics which are evident on a daily basis and are being permitted and seemingly encouraged to play out via AIM. High time the 'Regulator' got their finger out and started to protect genuine Investors in this market before it's too late!.
Don't think anybody is trying to impress you ,this is a long term hold ,a punt, in a dodgy oil market at a dodgy time.Things will change ,they always do .Don't think you or me or anybody else here makes any difference to pmg thankfully. ,but the shares are cheap ,Tom Cross is trusted so I don't give a flying duck, my deals Are done. All the best.
CaseyJones, some of these posters can't see that this company is going no where, talk of acquisitions earlier in the year have all but faded, and in my opinion there is no chance of PMG buying anything, if the oil prices fall much further, it's lights out for PMG, I can't come up with any other conclusion. I pulled some of my money out at 97p but still sitting on a heavy loss. Tom Cross on DANA, he and we will never see that again Those posters who describe the management team as the best in the industry don't impress me in the slightest, what have they achieved. Nothing.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.