Iofina Share Discussion Threads

[hitsha3] 13/8/2013 17:46

Festario, it's just market makers playing games mate.

[malachey] 13/8/2013 17:44

well 200ks worth of late buys may put you mind at ease Festario. I Wondered if we'd bounce off of 150p and considered trading part of my holding. But, i don't trade so much these days as I seem to get it wrong as often as I get it right, so i held on. Shame as I could have picked up a few extra shares...

Anyway, the drop this afternoon after yesterday's and today's rise is pretty standard for iof atm. It gets traded in both directions and so everything gets exaggerated.

[monty panesar] 13/8/2013 17:21

I agree about not worrying about any short positions. ASOS had a big short all the way up from £1 and even today has around 3.5pc shorts. Often it isn't even to do with the fundamental outlook for a particular company. Funds may short a basket of high beta stocks as a hedge against a fall in the market.
If IOF needed to raise money it might be an issue due to dilution etc but obviously this isn't the case. They are just adding to the market liquidity. The truth will out as they say.

[festario] 13/8/2013 17:21

...errm, well... The share price was looking quite positive earlier in the day, then (as usual these days) it predictably falls back.But this afternoon it fell dramatically, it looks very week all of a sudden. But not a comment from anyone.

[hitsha3] 13/8/2013 17:08

Festario, what are you trying to say?

[festario] 13/8/2013 17:04

...there is an Elephant in the room.

[superg1] 13/8/2013 14:22

Rug

I won't give you the new names for OK then, lol.

[n3tleylucas] 13/8/2013 14:02

Yeah, 250 to 146 was a real disaster for shorts ... just wait until 75.

[superg1] 13/8/2013 13:45

Fund short tracker site



I mentioned nano. Still showing 6% but it bounced of about 125 to 160's and that is without them closing. 12 mill shares to close there.

I see weir is 13%

[superg1] 13/8/2013 13:37

Stick in an order for 3 mill shares at a time when funds are buying and see what price they can come up with.

I know in the chaos a mention was made of Nano is next.

Well I recall seeing funds short for 6% of nano.

Yes of course they will spread fear, they need sellers to close positions.

The short position may rise here, but it's becomes a bigger problem for them if it goes the wrong way.

Shorts overall do better in falling prices where few are shorting it. It's fine applying the pressure to force it down and keep building, but if the cork pops, it's trouble, as you have buyers when you need to buy (close).

I note the approach to financial periods are a time they like to play games.

[rugrat2] 13/8/2013 13:28

Sg re True Oil's Utopia field, the wells are from memory quite old, shallow and low rate producers. I haven't much time to do anything in the way of research at the moment - doing average 13 hr days at the moment 13 days out of 14. Day off tomorrow, so might catch up on MidStates activities if the wife will let me!

[bobsworth] 13/8/2013 13:03

Ping and the shorts will be toasted!

I will the first to toast them for letting me to continue to top up on the cheap.

Bring it on Iofina.

[superg1] 13/8/2013 12:27

Engelo

re shorts

This is a good Q and A read to cover it.




You will see that especially on low traded AIM stocks the higher the short interest the more uncomfortable it becomes to be short.

The reason being the need to close the position in a time of things going against you. That is the same for longs, but longs generally have a high percentage of investors holding long term.

You can see that most shorts closing, involves buying share to return them to the broker they were loaned from, so yes in most cases a short closing, is just the same as someone buying the same amount.

I think someone mentioned 3% short in IOF. So we are talking 3.8 million shares out there on loan.

If for example someone offered $50m for the 200k acres leases and that was rns'd, it's obvious that the share price would take off. Some shorts would auto close on margin calls and so on.

More tame good news or buyer interest, may have some leaving in a steady flow, they may hold etc etc.

There are a number of positive points to IOF, and factors that could feature.

The water permit if that appears over the next few months, would then nail on an income stream of many millions per year with more depots to come, broker notes would then add that income to notes and so on. Some shorts would close (buys), investors would buy so it becomes a double problem if you are short.

IOF rolling out plants over the coming months is a big enough headache for them if they deliver, let alone the other parts.

So it is true to say that shorts need sellers to close their positions at good prices, otherwise the price takes off as they try to close them (if big numbers).

So you will get those short, shouting on here. 'Your all going to die' etc 'look at the short position climbing'

yeh right, the bigger the short gets, the harder it is for them to get out if it goes wrong.

I have listed a number of reasons why it could go wrong for them, and stick to keeping my eye on the research and future. It looks very good but we'll have to wait and see.

That's why I see the shorts as a big fund waiting to buy if good news comes out. Just like the other funds sat there waiting for the same thing, so a double or triple whammy.

The one thing with a short is that it is rarely a long term investment and you can't take your eye of it.

A share can only drop 100%, but it can climb multiples of that, hence shorting is far more risky.

[king_roster_iii] 13/8/2013 11:52

I would suggest it will be options as part of a LTIP. Which would of course be triggered if there was an early take-out.

[freddievas] 13/8/2013 11:48

Blimey, pistols at dawn skylite? That would indeed excite the market.

[diggulden] 13/8/2013 11:29

Does anyone have any thoughts on the potential package for a new CEO in terms of share allocation?

How does it work? Does the company issue more shares and assign to the new CEO?

Will be it granted via options based on performance?

Does the CEO purchase shares on the open market?

[skylite] 13/8/2013 11:24

Looking at it logically one can see why some funds/family offices/high net worth investors are holding off; a company with the growth potential that Iof has need a quality CEO and CFO driving it forward.

I believe a duel announcement will put a rocket up the share price

[sandbag] 13/8/2013 11:18

Also, if anyone is interested in Director's dealings it's usually a very good sign when a CFO buys. They're the one's with their finger on the pulse.

[ansana] 13/8/2013 11:08

EWCT thanks for the thumbs up, just tucked a few more away.

[bogg1e] 13/8/2013 11:05

sky thanks.

[monts12] 13/8/2013 11:00

Some chunky buys going through this morning, hopefully some newsflow will commence shortly?

[skylite] 13/8/2013 10:59

I've worked with good accountants and good CFOs. The good accountants will provide timely and clear financials/results. Good CFOs drive businesses forward, often experienced in many facets of managing a growing (hopefully) business. They are a fundamental member of the board, often seen as the 2nd in command after the CEO, who they work side by side with in developing plans and strategies. They are also the key player in the companies relationship with the market and investors. They're film star accountants and often become CEOs themselves.