AIR - Air NZ.

[stoploss]

Shorting in Aussie has been cut down by the regulators and should not be allowed full stop at times like this IMO, in a normal market it provides a balance but in the current market it creates an unwanted distortion. In fact there is merit in a complete market shutdown to create a level playing field that puts people before greed.

Arguably you could say the people trying to snaffle up "cheap" shares by the bucket load are being greedy ... 2 sides to this coin.

[aquaman]

Just spent my couple of thousand airpoints at mitre 10 so have a project to do at home if/when lockdown occurs. Also means not concerned about potentially having them frozen or taken from me. Do wonder if that is likely

[winner69]

Shorting in Aussie has been cut down by the regulators and should not be allowed full stop at times like this IMO, in a normal market it provides a balance but in the current market it creates an unwanted distortion. In fact there is merit in a complete market shutdown to create a level playing field that puts people before greed.

Some say shorting is immoral but whatever ‘shorters’ are unpopular.

Like the ‘short and distort’ phrase in this Forbes piece


https://fortune.com/2018/06/23/why-s...elling-shorts/

Argument

Critics say short sellers can transform downturns into full-blown panics. They also point to the ability of shorts to hoodwink investors by spreading false rumors before exiting a trade, a technique known as “short and distort.”

[skid]

Shorting in Aussie has been cut down by the regulators and should not be allowed full stop at times like this IMO, in a normal market it provides a balance but in the current market it creates an unwanted distortion. In fact there is merit in a complete market shutdown to create a level playing field that puts people before greed.

I remember them doing a similar thing back in the GFC when things got out of hand.....For those who were around memories of those days are an asset

[Baa_Baa]

I remember them doing a similar thing back in the GFC when things got out of hand.....For those who were around memories of those days are an asset

There is one massive difference between the GFC and current market price action, see if you can pick what that difference is. These are the DOW Monthly bars:

[Lego_Man]

I don't know why people rail against shorters.

At the end of a selloff, the first buyers are actually people covering their shorts - this provides liquidity and price discovery to a market. The nature of shorting means that you have to monetise your position much earlier than a long would (shorting has a max 100% gain, being long has a potential unlimited gain). This is why you also get big short-covering rallies during bear markets that actually allow longs to exit at a better price.

Shorters also have other risks to contend with like takeover bids for companies you are short (providing a brutal loss) or government intervention.

If you had done any actual shorting you would realise it's a tough game, it's not freewheeling predators screwing everyone else. And anyone short Air NZ is doing the world a favour by expediting the share price's journey to its current real value (zero).

[Beagle]

I don't know why people rail against shorters.

At the end of a selloff, the first buyers are actually people covering their shorts - this provides liquidity and price discovery to a market. The nature of shorting means that you have to monetise your position much earlier than a long would (shorting has a max 100% gain, being long has a potential unlimited gain). This is why you also get big short-covering rallies during bear markets that actually allow longs to exit at a better price.

Shorters also have other risks to contend with like takeover bids for companies you are short (providing a brutal loss) or government intervention.

If you had done any actual shorting you would realise it's a tough game, it's not freewheeling predators screwing everyone else. And anyone short Air NZ is doing the world a favour by expediting the share price's journey to its current real value (zero).

Well said !!

[Jaa]

Bit of good news from last week. The government is covering some of the airlines government charges as part of the aviation support package.

Financial support to airlines to pay passenger-based government charges for the next 6 months ($163 million) and to cover Airways related fees for the next six months ($37 million),
Any fee rises or pricing reviews from agencies that charge fees at the border (Ministry for Primary Industries, Civil Aviation Authority, Aviation Security Service, Customs, Airways) are put on hold for 12 months Source

You can also expect airfare costs to rocket in price. As all those fixed costs get spread across a much smaller number of tickets. NZ public won't like that but it's unavoidable.

[dobby41]

I don't know why people rail against shorters.

Because it turns what should be a market into a gambling den.

[Beagle]

So its okay for people to take heavily leveraged long positions but an unleveraged short position is gambling ? Yeah, whatever...