Stephan Bernstein, CEO of GreenRoc, details the PFS results for the new graphite processing plant. Watch the video here.
“Those holding would be relieved that the share price has rebounded 26% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. Not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 44% in the last twelve months.”
“Before today, Petrofac was one of the most shorted firms on the London market“
This article was complete conjecture and based solely on the SP rise.
FACT: Shorts increased!
Most Shorts are still betting on the SP falling. Well I guess we will have to see about that. Onwards and upwards 👆
3 million more buyers than sellers in an hour. The Shorters may well be buying behind closed doors and the unwinding of positions shown at a later date, the witching effect.
Otherwise where are the MMs getting the shares to sell?
Shorters were waiting to see if the overnight US market selling would encourage selling here. Well it didn’t! More buying! Remember Shorts don’t have to sell all or right now but the more the SP rises the worse it gets for them.
GLA
Shorting involves selling a stock that you don't own, then selling them to another investor hoping to buy back the stock at a lower price often paying interest on the value of the borrowed shares while the position is open.
Shorting, is essentially betting that the stock's price will decline. The trader can put out information stating why they think the stock will fall. Traders can’t co-operate with each other to harm a share but by reporting their short and issuing a paper to say why they are shorting, others may jump in. This can put downward pressure on the stock's price, increase the shorts and potentially harm the company's market value. If a company's stock is heavily shorted, like Petrofac, it may face challenges in raising capital, have short term funding issues or have problems with advanced payments, as potential investors or clients may be reluctant to get involved with a stock that is heavily shorted. It can create negative sentiment among investors, clients and the public, potentially impacting the company's reputation.
If losses occur, the share rises, this will result in the broker making margin calls against the trader. They must either deposit more cash or sell their position.
A short seller, if a share suddenly jumps higher, may have trouble finding enough shares to buy if other traders are shorting the stock.
IMHO the Shorters were right and Petrofac does/did have a short term liquidity problem due to legacy contracts, however, I also believe that the attack was coordinated and led to an unwarranted collapse in the share price. This should now start to reverse.
AIMO
Petrofac was worth more than double what it currently is valued at just 2 months ago!
Shorters will be trying to manage an exit. Still looks cheap and a buy on my Christmas list.
STIs - Short Term Investors who paid low 20’s and under are booking profits. DON’T LET THESE GO CHEAP NOW THE TIDE HAS TURNED!
AIMHO
@SJ
No Short Holders above 0.5% reported any increase or decrease since the 15th of December (see previous post).
There is no way of knowing otherwise exceptif you work in one of those companies.
Here endeth the lesson.
I have watched Petrofac on its slide from 87p down to 20p (before buying 10k) and was surprised by the lack of communication from the board with the SP falling so fast but also there were no flags by analysts and commentators kept mentioning the price of oil going down as the reason for the SP decline, even during dramatic falls.
Clearly, something was going on, and the Shorters probably had inside information and passed it around to each other. However, the company should have acted quicker with an RNS explaining issues and intentions to shore up the company. A lack of transparency worsened the situation.
I bought more below 18p and believe the market has already priced in the poor communication and failure to act quicker. I also believe like many here, that a solution that will not be a dilution to the shareholders will be found. Therefore, a recovery above 40p should be achievable in the short term. AIMO.
Astaris Capital Management LLP 2.34% 0.08% 15 Dec 2023
Helikon Investments Limited 2.85% 0.15% 15 Dec 2023
Marshall Wace LLP 0.90% 0.10% 8 Dec 2023
TFG Asset Management UK LLP 1.14% 0.13% 8 Dec 2023
Whitebox Advisors LLC 0.84% 0.12% 4 Dec 2023
Tages Capital LLP 0.70% 0.07% 30 Nov 2023
GLG Partners LP 0.68% -0.11% 16 Nov 2023
Total 9.45%