CFD's / OMJ4 Oct 2023 10:37
I’m going to break a promise that I made yesterday about not responding to our “friend” – however as CFD’s are relevant to i3e, I thought I could justify it on the basis of sharing a little information and at the same time highlighting the misinformation that Loius10(omj) spreads.
This is what he posted yesterday at 16:20 on the PANR BB
“The "long-term shareholder that is supportive of Pantheon's corporate strategy for delivering sustainable market recognition of $5-$10 per barrel of recoverable resources" is selling.”
So, this is misleading at best and more likely deception which appears to be entirely consistent with how Louis10 operates. The context here was that PANR’s SP fell sharply yesterday and there were some discussion as to the reason. A TR1 was issued indicating a change in a large holder’s beneficial interest (Michael Spencer). Coincidently the TR1 was reissued this morning with a small correction but here’s a brief summary of what it said:
Beneficial Interest as of this TR1:
Ordinary Shares 4.62% CFD’s 1.33% Total 5.95%
Prior Interest:
Ordinary Shares 4.99% CFD’s 0% Total 4.99%
CFD’s have some similarities with ordinary shares and some differences. Once of the main differences is that with CFD’s you don’t actually own any shares. Some of the similarities are that you get voting rights as if you held the shares and you also get a financial interest – basically the difference in the price you sign the Contract (CFD) at and the price as of the settlement date. Why do Investors do this – one of the main reasons is leverage – you increase the potential gain (and losses) from a bet on the SP.
So enter Louis10 – jumps all over this announcement pushing the negative narrative that a significant holder is selling out of the stock consistent with his recent bashing of PANR. Technically the holder has reduced their direct ownership of shares by 0.36% (of overall outstanding shares) but have increased their overall bet (both financially) and voting rights by nearly 1%. So far from selling out – the Investor has significantly increased his exposure to share price movement – he’s just using a different instrument to get that exposure.
Any relevance to i3e – yes – a TR1 was recently issued for Polus. They marginally increased their exposure to i3e via CFD’s. They had a large position in CFD’s previously but increased slightly in the last few days. They now have over 19% of the ordinary share count but importantly have nearly another 10% via CFD’s – so about 29% of the vote!!
Sign In
Follow the stocks
