ATM - A2 Milk Corporation Limited

[Beagle]

Bum burning day has arrived Lol.

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

[Ggcc]

A thought for those poor shorters........ yeah that thought went fast

[minimoke]

So, how do you figure out what the shorters are selling at? (I'm new to this shorting business!)

[winner69]

So, how do you figure out what the shorters are selling at? (I'm new to this shorting business!)

They probably laughing at those who think they are getting burnt big time

[minimoke]

They probably laughing at those who think they are getting burnt big time

Thats what I'm trying to learn. How do we know its not shorters selling today at $12.15 or $12.20 or $12.25?

[winner69]

Thats what I'm trying to learn. How do we know its not shorters selling today at $12.15 or $12.20 or $12.25?

I would say that only the shorters can tell us that

What’s said about this shorting stuff I reckon is just speculation. Nobody really knows the detail

Bit like you mini in that I don’t understand all this that well either ...maybe it is just people’s imagination ...or I am very naive, which is likely the case.

[Leftfield]

Thats what I'm trying to learn. How do we know its not shorters selling today at $12.15 or $12.20 or $12.25?

MiniMoke, the more I learn about shorting, the more determined I am to avoid shorting.

KISS principle makes more sense. IMO this is one stock that is best to go long on. Watch the trends, buy the dips, and be patient (what other stock has the potential to continue to outperform NZX so well over the next year or two.)

JMO - DYOR

(ps bit early to call it yet, but today looking like a great day for longer term ATM holders. Now in the upper gap area, and upwards pressure mounting.)

[minimoke]

MiniMoke, the more I learn about shorting, the more determined I am to avoid shorting.

KISS principle makes more sense. IMO this is one stock that is best to go long on. Watch the trends, buy the dips, and be patient (what other stock has the potential to continue to outperform NZX so well over the next year or two.)

JMO - DYOR

(ps bit early to call it yet, but today looking like a great day for longer term ATM holders. Now in the upper gap area, and upwards pressure mounting.)

I'm not interested in shorting. Haven't got the gonnads for it. But trying to understand how it works and how a market sentiment might move because of them. (ATM in my 5 year plan basket)

[Lego_Man]

I'm not interested in shorting. Haven't got the gonnads for it. But trying to understand how it works and how a market sentiment might move because of them. (ATM in my 5 year plan basket)

You'd be wise not to read anything on here if that's your aim - it's mostly uninformed conspiracy theory gibberish.

Things to remember about shorting:

i) the idea that people short to drive the price down before then using the selloff to load up on cheaper shares, is mostly fantasy, especially on larger cap stocks where the market is more efficient. Thinking about it, the net effect would typically have to be zero or negative (to succeed, you have to sell enough shares to tank the price, then buy a larger amount at the cheaper price without moving the market back up again).

ii) it's not some nefarious slam-dunk practice designed to screw the retail shareholder, in fact it's an incredibly challenging and risky strategy. When you short a share you face unlimited losses if the stock rallies, and have borrowing costs to contend with. Your stock can also be recalled before you've made meaningful money, even if you're right. Contrast to a long side investor who benefits from generally rising markets, and can only lose a maximum of 100% on any one holding.

iii) It's not a god-given right for people's favourite stock to go up in a straight line. 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.

In our capital markets the shorter should be respected, not vilified.

[Lego_Man]

I'm not interested in shorting. Haven't got the gonnads for it. But trying to understand how it works and how a market sentiment might move because of them. (ATM in my 5 year plan basket)

Also, most people shorting use it as part of a broader strategy. E.g. you might want to express a relative view on outperformance of BHP vs Rio Tinto - so go long one and short the other, neutralising the broad sector risk. Or simply balance market exposure by picking a bunch of longs you think you will outperform the market, and couple with some shorts that you expect to underperform the market - this enhances your returns and lowers volatility if done successfully.