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30’s coming, this time around thanks to the Index-Funds loaning their stock out for Shorting. Everyone loves a bargain, but 20’s is even better.

The –Long-Term-Short-Company

Oil is sharply moving back up. WTI $108.38 + 2.51%, Brent $111.89 + 2.60%. Bad news Tullow will likely be held in a channel for a few days. But that gives buyers loads of time to buy.

Supercooper hi, Here’s something for you to ponder: March 15th to 18th the stock was taken down to around 46.50 & stock sold to the Index-Funds. How was the stock moved & more interestingly where did the stock come from at the lower price level. How was it sold without loss ? What are the mechanics ? There’s a merger forthcoming, so why are we yet again temporarily at this price level ?

Supercooper hi, Oil is doon because Opec+ has agreed to increase it’s output, also US demand is down due to the price at the pumps. I would strongly recommend reading ‘accredited-books’ not internet searches to learn about the Stock Market. Too much smoke, mirrors, incorrect info & guess work. The Short positions above should have a note attached stating that it doesn’t show the full picture. Only those that are obliged to disclose. There is a lot to Shorts, a lengthy topic of it’s own.

The stock is now being Shorted below the price level that the Index-Funds bought in at in March. No limits to the Shorting on this stock. 20p would be a good buy in price, keep it up, thanks.

If you knew the mechanics behind this move & the Merger value, you would know that this is a fantastic buying opportunity. God bless the Shorter’s, for creating such a wonderful opportunity.

Themanxmarty hi, it was both. A quick low risk trade, in & out. Completing at 14:58.

There are companies listed on AIM with $1.5bn of assets & a market cap of just £10m, share price less than a penny. Nothing about the Stock Market is what you think it is.

Was traded on Friday & the trade completed at 14:58. The Volume bar can be seen but the candle is not so obvious as it had a long wick on top to 5.10p. The mechanics of the trade can be deduced from the candle. Obviously a risk averse Pro Trader, that knows what they are doing.

If a stock price is say £1 & someone buys or sells a billion shares at £1 there will be no price movement at all. Because no value has been added or subtracted, just the stock changing hands & reported to the Exchange. The object of After Market reporting is to reduce price impact. Taking into account these late reported trades & in the absence of the stock opening due to a UT or MM price adjustment, the mid opening price will be 5.858 pence.

WTI currently up 3.74% @ $108.21 Shame there’s always something going on with this stock holding it back. When the brakes come off Oil will probably be pulling back. RiskInvestor, I think some invested hoping for a fat dividend from CNE & are probably not too h a p p y.
All hail the power of the Short.

Gejgaboy hi, my understanding is: Yes they are merging into one single company. No they are not buying the shares. The market Cap Values are just combining & being divided by the new fully diluted issuance which is 2b820m086,730 shares. This will be very slightly less as CNE still has about £3.4m worth of buy back to complete before the 6th of July. Which is not compulsory.

Current amalgamated share price calculated at CNE £2.13 & TLW 47.66 divided by fully diluted issuance equates to 51.56 pence. Assuming the shorts commenced around the 30th of May, closure should take the sp back to around 57p.

Bluemoon71, that’s 100% spot on. In the absence of ever increasing profits & dividends to raise the stocks, this is the only way that they can make money.

A lot of effort has been made shorting the stock down in the hope it induces folk to sell. Please oblige, they can’t hold it down indefinitely. When the shorts are closed the value is returned to the sp. See it for what it is, bargain time for buyers.

This looks to me to be a standard Hedge Fund Long-Short-Strategy trade. Long CNE Short Tullow. CNE’s share price is not budging. When the Merger is completed the SP should correct with value transferred from the CNE share price. If the Shorts are closed at that time then this will also increase the SP, as the value is returned. In March the Index Funds bought in at around the 47p level, so that may provide support. If however they decide to loan their stock out then this may temporality fall lower. Obviously the lower the stock is shorted the better the opportunity to top up at a lower price. Use them at their own game.

RiskInvestor hi, this is an Industry that makes lots & lots of money & doesn’t suffer losses. It has nothing to do with Investing, that’s just a misperception in Joe Public’s head. There’s a different game being played & it’s playing out right now. PI’s are more comfortable thinking of this as an Investment because then they don’t have to workout how the Stock Market works.

Don’t believe it until you see it. 75, 95, 82p etc why didn’t these ratings materialise when WTI peeked at $129.44 & Brent $133.13 in March. Oil is now off it’s peek & some predict the economic discontent to continue until the end of next year. So I can’t see these fantasy’s coming true anytime soon. Also if were in a Recession & money is tight, where are the millions coming from to take the market cap up ?

You do have to smile. The Industry moves it down when it suits them but when there’s a genuine reason ie Oil plummeting they try to hold it up. It will be interesting to see what happens if Oil drops below $100, if it triggers a few sensitive large investors to act.