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You also JB.
The long term holders know what it is to see the price literally plummet within 15 minutes.
So no amount of antacids are going to help a stomach during that fall.
Glad to hear your being cautious JB but the stop loss can also be a double edged sword.
Be very careful!
Redceo good to hear from you and I totally agree and although I am staying in I will be careful. I think there are still a number of cards/tricks to be played.
JB. Totally agree with your thoughts. The reason I swapped most of my holding here is that I felt the shenanigans had sunk to a new low and that wasn't easy considering how low they were to start with. I wouldn't be comfortable here currently.
Carrington totally agree with the logic I just don't understand why a few more haven't closed in last week or so, I think most people expect a RMG/CWU deal to be done which I think will be seen as a positive so in the very short term I expect the SP to go a wee bit higher.
Why did shorts continue to increase when DK was buying? Did it help keep the price down for his purchases? DK owns 13.1% if he dumps some or all will the shorters get an opportunity to close out then?
I know I am beginning to move into conspiracy and collusion but these people generally make a killing so as I say IMO caution is still required.
The plus point for RMG with shorts reducing is that it is fuelling the rise as the shorters have to buy back the shares they shorted, so increasing the overall buy volume, so in effect the shorters are helping to put others shorters out of the market by increasing the share price - up another 3.4p as typing
dyor etc
Mr Nation long term there is a possibility RMG could get back to a much higher level than currently. It depends on a number of major factors most of which have been mentioned before. Parcel automation is critical and this needs to be delivered as quickly as possible and I expect a huge chunk of investment to be made here. Unfortunately most who work or have worked in the business will tell you the track record for moving quickly is very poor.
Aligning resource to workload is also a huge challenge with parcels growing and letters declining managing job losses in certain areas/offices will take years through natural attrition. Yes some offices may be concentrated into super hubs/specialist sites and staff may transfer but all takes time. RMG/CWU agreements need to clear the path of least resistance to achieve some of these plans.
In the immediate future we still face the dilemma of what are DK and the shorters going to do next. It was good to see the shorts reduce slightly yesterday and of course some are just hedges against market movement ie Blackrock hold long and short positions. If DK was to start to sell I believe we would see quite an impact on the SP equally if shorts buy to close. Not wanting to reignite the debate of will DK make a TO bid or try and buy just GLS but he is here to make money and will through some strategy. He could even join the shorters. So IMO I believe there is an opportunity for RMG to take advantage of the new normal but need to move quickly plus keep an eye on the other factors. I have personally taken steps to protect my current position (stop loss) and have funds available to buy. IMO I dont think it will be a straight run to former glories and I will be holding with caution but still here for the long term. AIMO
Thanks for the link tsop.
I still don't fully understand... a broker doesn't actually own shares they're just a vehicle by which people (usually PI's) can buy/sell or hold shares.... so the shares the broker is lending aren't actually theirs to lend?
Could it be the RMG I've currently got with a certain broker have actually been lent to a shorter by my broker?
Shorters borrow shares from brokers, brokers charge around 2% interest and there's no time limit, and of course shorters have to give back the shares plus interest.
https://www.investopedia.com/ask/answers/012915/how-long-can-trader-keep-short-position.asp#:~:text=There%20is%20no%20mandated%20limit,replaced%20at%20a%20later%20date.&text=Stocks%20are%20shorted%20by%20many%20investors%20every%20day.
Does anyone know if there is a set timeframe for "shorters" to borrow shares (a day/week/month) or are private deals struck?
What do the lenders get out of it?
Are the shorters getiing 'short to bits'!
One can only hope.