ATM - A2 Milk Corporation Limited

[winner69]

Thanks legoman ..good stuff

[t.rexjr]

Trouble is with trying to understand shorting is that there are so many objectives. Far more to learn than what can be summarised on here by someone talking in single perspective.

To claim directional pressure cant be applied is fallacy. Take a look at this chart a from one of the A2M trading days pre 31 May. The 'money flow' indicator is steadily climbing (indicating buying pressure) while the stock price steadily fell. Pretty simple really. Sell 100k shares in small parcels hopefully lowering share price. Buy back 110k shares for the same outlay. Rinse and repeat until you have filled quota, then cover the short.

Sell free float shares to 'Boss Hogg' on Market. Pay 'Boss Hogg' profits by way of fee for 'services rendered'. Collect commission. Boss Hogg has purchased quota of shares for the cost of commission. Trader drives away in new Maserati

Clearly the second part is fantasy & wild speculation, but I tagged along on the first part and did OK. That was untill I missed my last trade and wound up back at square 1. Oh well, You live and you learn...


Attachment 9755

[Redmack]

Thanks Minimoke and Lego man for the questions and the answers.

[44wishlists]

Thank you for Lego_Man.

Overruns on the upside should be able to be "bet against", just as overruns on the downside can be exploited by bargain hunters or value investors. In fact you could argue that the shorter is doing smaller investors a favour, by supplying more shares for them to buy at lower price.

This is exactly why we short position, as part of our investment plan too.

[winner69]

The stories you hear about these distardly shorters would make you wonder where is all the rumour mongering that some products are tainted and the leaked reports from China that the government is going to ban imported formula products and even worse the AFR reporting that the financials have been fiddled and revenues are nowhere as high as reported .... all to send the shareprice plummeting


Isn't that often their modus operandi ...at least that seems the way they operate if you read the papers.


No - above not real ....just made up things that have happened to other companies.

[peat]

21st of June - "SHORT-est day of the year"

BOOM!

Sorry

I smiled and kind of surprised I'd never heard it before!

[peat]

Start at 1.15 https://www.youtube.com/watch?v=ep_mf6ZE9U0

woah, that is awesome! be sure to turn it up to 2160 to get the full 4K ass burning experience.

yeh I wouldn't short this stock. and I would HODL if I had any but cant find the gumption to get in. I was starting to think about it during the deeper part of this post guidance correction phase but haven't. I guess my main concern about the super inflated price is the longevity of the competitive advantage. If it is only branding ....then a limited life span?
IMHO thats why you never pay crazy PE's because something can always go wrong.

[JoeGrogan]

Trouble is with trying to understand shorting is that there are so many objectives. Far more to learn than what can be summarised on here by someone talking in single perspective.

To claim directional pressure cant be applied is fallacy. Take a look at this chart a from one of the A2M trading days pre 31 May. The 'money flow' indicator is steadily climbing (indicating buying pressure) while the stock price steadily fell. Pretty simple really. Sell 100k shares in small parcels hopefully lowering share price. Buy back 110k shares for the same outlay. Rinse and repeat until you have filled quota, then cover the short.

Sell free float shares to 'Boss Hogg' on Market. Pay 'Boss Hogg' profits by way of fee for 'services rendered'. Collect commission. Boss Hogg has purchased quota of shares for the cost of commission. Trader drives away in new Maserati

Clearly the second part is fantasy & wild speculation, but I tagged along on the first part and did OK. That was untill I missed my last trade and wound up back at square 1. Oh well, You live and you learn...


Attachment 9755

The twiggs money flow indicator on my chart was declining pre 31 May. If the share price is declining even slightly on strong volume, it still means there is stronger selling pressure than buying pressure (i.e distribution), so money flow normally will go down. (Charts from the ASX)

Attachment 9757

On another note, shorting is very effective on range bound shares, gives an opportunity to make money both ways as it fluctuates within its range. Shorting requires strict stop losses and hedging rules to be successful imo. On the chart above, shorts were increasing as the price got closer to 10.95 as it was a key resistance level (see shortman). Now that it has hit the 11's some shorts would have had stop losses triggered yesterday - driving a intraday price spike .

[IAK]

New study seeks to understand more about A2 milk - and the huge changes it potentially brings. Results of this study due in July. Interesting, Lactose-free milk has a disadvantage as a product; ice cream and other dairy products made from it do not taste as good.

https://www.nzherald.co.nz/sponsored...ectid=12075177

Disc. Holding this roller coaster.

[dobby41]

New study seeks to understand more about A2 milk - and the huge changes it potentially brings. Results of this study due in July. Interesting, Lactose-free milk has a disadvantage as a product; ice cream and other dairy products made from it do not taste as good.

https://www.nzherald.co.nz/sponsored...ectid=12075177

Disc. Holding this roller coaster.

A 'sponsored' story.
I would have thought that they understood how it worked by now but it seems not.