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No AS, you just don’t like anyone replying or stating any opinion that is different from your own. Then you just resort to sarcasm, rudeness and being dismissive.
With an attitude like that your never going to learn anything new. Each to their own.
And if anyone would like to observe a classic example of what I am talking about, check the FRES board ( Fresnillo plc.) and look at what that has deteriorated into in the last couple of days
@Angel I have done that I currently hold stock in RMG with no intention of selling and also trade some others on a completely different broker account.
Have a nice weekend.
@Dan exactly this is what these boards do to people.
I saw it in 2019 and tried to help the a set group of posters out and tell them what I had observed only to end up getting drawn into petty bull**** and ultimately becoming the main target for them.
The same crowd predominately all sold sub £2.00 in mid 2020 after spending the previous 18-24 months going on about fundamentals and not much else.
Yeah, fair enough. You sounds calm…
I think Dan makes valid points and today is no different the price started well and tested the 441 resistance and then at the 10am auction the shorts came back in and have taken control once again.
The market is the market and fundamentals count over the long-term, but short-term the market is a traders paradise with the @vix at its current levels. (422 - 440 is 3 % in 24 hours.)
Anyone basing their buying of stocks on fundamentals alone would be a lot better off taking the Warren Buffett approach buy them and check in on the price once in a while but ultimately have a 3-5 or even a 10 year outlook.
AS, it doesn't matter about the fundamentals of RMG to a certain extent. Clearly you haven't learnt yet that markets are mostly driven by sentiment and forward looking. What sort of person would want to buy a company where their profit was dropping by 200m, regardless of whether after that they were still "good value".
Investors are like pack animals, learn to mostly follow the crowd and you won't be sat here getting more frustrated by the day at a dropping SP. Either that or seek out a company you truly believe in and then stop looking. You're just going to wind yourself up more and more.
Once the attitude turns and money starts heading back into RMG it'll do great and you'll wish you had brought more. It just might take a while until that happens.
Marshall Wace is likely increasing for two reasons, one because they think COVID is over and that RMG's profitability will be heavily impacted by this.
Two, RMG stepped up the buyback program to 500k shares a day, with the daily volume currently around 2-3 million shares supply at those volumes will dry-up, the shorts are therefore creating artificial supply to meet the demand from the company.
It's very similar to DK v the shorts last year, with the difference being a lot of profit taking was likely taken at the higher level and I would assume real selling pressure from overhead supply (those who bought above the current price) will not occur until those holders approach their breakeven point.
There are some great books on trading mindset by both Mark Minervini and Mark Douglas I rate them above anything fundamental and technical analysis based.
They're probably free on YouTube or Audible.
Thanks for clearing that up teslo and Maximas.
I realise that business is business and even bankers have children that need feeding but somehow it just doesn't seem right. Maybe I don't have the necessary mindset?
Thanks Maximas. According to their website.....
"Marshall Wace is a leading provider of alternative investment solutions. Operating as a single team across the globe, we are dedicated to creating long-term relationships with our clients built on trust and integrity. We define our culture as one of continuous innovation and a quest for improvement."
They borrow the shares from existing holders from brokers, unless you have sell order limit placed with your broker they're free to " lend " those shares out.
Marshall Wace could be shorting for any number of reasons, hedge funds are never normally more than 70 % long, so they will always be shorting 20-30 other stocks.
If RMG continues to make a profit in the 300-500 million range on an ongoing basis whilst it continues to streamline and modernize the business the shorts will eventually get burned as they did in September 2020, especially if they pursue the share buy back long-term.
If the price falls too far they will also just step-up the buyback daily rate as they still have circa £165 million in the pot, the BOD knows the fair value of the company. At today's closing price of 435.2 that is 37.9m shares,
Daily volume on RMG is around 2-4 million shares on a normal trading day so it seems that only people selling shares currently is the shorts. Marshall Wace are short circa 8m shares and RMG has the funds in reserve to buy 37.9m shares, they are probably hoping the shorts increase simply so they can buyback even lower and currently RMG have the buying power to burn them them on any given day.
Fundamentally the only problem the company currently has moving forward is controlling the labour costs, 15,000 being of sick during covid resulted in £300 million additional costs. GLS is continuing to grow and as people were saying in 2019 it is probably worth more than the market cap alone, nothing has changed their.
Short-term if the market crashes and takes RMG with it, we may see a repeat of the past, but that will just create another opportunity as it was at the end of 2019 and early 2020.
The fundamentals long-term for RMG are also a lot stronger now than they were in 2020.
If you have shares stored online,which many do,these company’s can borrow them from you without you knowing.
Marshall Wace are showing a short position of 0.81%.
As there are now 993,000,000 shares in circulation, would I be correct in thinking that MW have "borrowed" 80,443,000 shares in the hope that the SP will drop on a daily basis?
a) Who do they "borrow" the shares from?
b) If RM are buying their own shares back to reduce numbers then does this increase the short holding percentage for MW?
Marshall Wace add a bit more. I wonder how long before some of their mates join in?
https://www.shorttracker.co.uk/