AVZ Discussion 2022

[wombat74]

As many expected , an extension . Can anyone shed light on why no ML as yet ?

 

[Misfits]

A fairly predictable and sensible extension, Mr Market hates uncertainty and the MACRO is still fairly volatile, just a question, why do shorters still need to make payments whilst in TH ?

My understanding is you can still cancel open orders whilst in TH, isnt that the same for shorters ?

imo

When you borrow shares from a broker you normally pay fees. You can short as long as you want but ongoing fees are needed to be paid to the broker. PS: If you borrow millions of shares , that would be a lot of $$$

 

[Samus]

As many expected , an extension . Can anyone shed light on why no ML as yet ?

Perhaps the DRC government needs to entertain this circus of NGO's Franck spoke about before CAMI can officially release the paperwork?

 

[BEISHA]

A BIG WELCOME TO AVZ TSE , to the following......

@CeckRaiseFold , @Bin59 , @j.l , @BenGriffo

I hope you enjoy the variety that ONLY TSE can provide, freedom of speech, high quality intell, mixed with some hilarity, without the gestapo watching over every word you write..........

enjoy.

 

[John25]

They say “no news is good news” but we need to hear something (truth) on whats actually going on with ML/% wise …Nige we are LTHs been through thick /thin …said we were to have a ML within DAYS ..weeks have now passed

 

[BEISHA]

When you borrow shares from a broker you normally pay fees. You can short as long as you want but ongoing fees are needed to be paid to the broker. PS: If you borrow millions of shares , that would be a lot of $$$

I have never been a shorter, dont know how it works, so thanks for that reply, can you be a shorter without a broker ?

 

[DiscoDanNZ]

They say “no news is good news” but we need to hear something (truth) on whats actually going on with ML/% wise …Nige we are LTHs been through thick /thin …said we were to have a ML within DAYS ..weeks have now passed

Yeah I was really optimistic when he didn't say it was imminent for a change

 

[JAG]

 

[Winenut]

I have never been a shorter, dont know how it works, so thanks for that reply, can you be a shorter without a broker ?

Hey Beish

This might help a bit

https://www.marketindex.com.au/short-selling

and just for the record I definitely don't short

 

[JAG]

 

[wombat74]

Perhaps the DRC government needs to entertain this circus of NGO's Franck spoke about before CAMI can officially release the paperwork?

Thanks for the reply . I'll be honest it's the one thing concerning me at the minute . Would liked to have seen the ML done and dusted . The words "in connection with " & "regarding " the mining rights does not fill me with certainty if the dispute is only over the 15% . Or maybe they just haven't got around to it yet .

 

[Sammy_da_Smile]

Very interesting documentary on the DRC for those that have 17 min free today.

Worth a watch.

 

[Samus]

Thanks for the reply . I'll be honest it's the one thing concerning me at the minute . Would liked to have seen the ML done and dusted . The words "in connection with " & "regarding " the mining rights does not fill me with certainty if the dispute is only over the 15% . Or maybe they just haven't got around to it yet .

One thing is for sure - it's a head fuck.
The ambiguous wording of these announcements isn't helping. Had really hoped for a bit more clarity in the reasoning behind the extension this time
Not surprised in the slightest however that we didn't get any.

 

[Retrobyte]

I'm ambivalent about the extension to suspension - ideally I'd like a progress announcement while in suspension that provides an update on where things are at, so we have a better idea on how this is going to pan out

 

[Sammy_da_Smile]

Very interesting documentary on the DRC for those that have 17 min free today.

Worth a watch.

Article here.

Mind boggling!

China Cash Flowed Through Congo Bank to Former President’s Cronies

A leak of 3.5 million documents shows how a Chinese-run company moved millions of dollars to former Congo President Joseph Kabila’s family and allies.

www.bloomberg.com

 

[TDITD]

Interesting that the extension is very short

Not sure what it might mean?

Are AVZ and the DRC "that" close to having this sorted???

Or does it mean jack shit because as we all know the suspension can very simply be extended again with exactly the same type of announcement on 1 June?

Yes I hope this is a ploy to torture the shorters, for example if July has been mooted they will keep doing this till then.
Delicious they will be paying borrowing costs. I can smell their desperation, with luck AVZ comes out with the ducks in line so I can taste it too

 

[DiscoDanNZ]

I'm ambivalent about the extension to suspension - ideally I'd like a progress announcement while in suspension that provides an update on where things are at, so we have a better idea on how this is going to pan out

With all the legal issues floating around I'm sure its simply just a case of not saying anything potentially damaging. Last thing we want is a law suit for slander etc.

I'm sure the company has plenty of stuff they'd love to say but are holding their tongue.

 

[cruiser51]

When you borrow shares from a broker you normally pay fees. You can short as long as you want but ongoing fees are needed to be paid to the broker. PS: If you borrow millions of shares , that would be a lot of $$$

When I googled cost of borrowing shares to short, got the following answer:

Cost of Borrowing a Stock​

The cost of borrowing a stock to short can vary but typically ranges from 0.3% to 3% per year. The fees are applied daily. The borrowing fee can be much higher than 3%, and can even exceed 100% in extraordinary cases, as it is influenced by multiple factors. For example, similar to loan costs, the lender charges a leasing rate. This leasing rate for margin varies by the broker but is typically driven by whether or not a stock is "easy to borrow" or "hard to borrow."

If there's a great demand to borrow a stock, the borrowing rate for Shorting will often be higher than if there was little interest in borrowing the stock. The laws of demand and supply apply to the cost of short selling as well.

Say if 1 person would have shorted all the 150 million shares at a strike price of $1 and an interest rate of 3%, the daily fee would be 3% x 150 million / 365 = ~$12,400 per day. If total days of outstanding 20 days, the cost would have clocked up to .16 cents/share over the 20 days.
Doesn't seem to drastic at 3%, but we don't know the interest rate being charged.

 

[TheCount]

I got modded in 16 minutes for posting a link about Vulcan taking legal action against bogus reports from a short selling firm on the crapper in the new Boatman thread. Wow.

They can give it but not take it. True sign of a bully.

Good to see you here BenGriffo..

TC.

 

[Thaz]

When I googled cost of borrowing shares to short, got the following answer:

Cost of Borrowing a Stock​

The cost of borrowing a stock to short can vary but typically ranges from 0.3% to 3% per year. The fees are applied daily. The borrowing fee can be much higher than 3%, and can even exceed 100% in extraordinary cases, as it is influenced by multiple factors. For example, similar to loan costs, the lender charges a leasing rate. This leasing rate for margin varies by the broker but is typically driven by whether or not a stock is "easy to borrow" or "hard to borrow."

If there's a great demand to borrow a stock, the borrowing rate for Shorting will often be higher than if there was little interest in borrowing the stock. The laws of demand and supply apply to the cost of short selling as well.

Say if 1 person would have shorted all the 150 million shares at a strike price of $1 and an interest rate of 3%, the daily fee would be 3% x 150 million / 365 = ~$12,400 per day. If total days of outstanding 20 days, the cost would have clocked up to .16 cents/share over the 20 days.
Doesn't seem to drastic at 3%, but we don't know the interest rate being charged.

Shorts as at 16 May were 150M.

Say, at 3%, that is $12,400 per day they're suffering at a loss in totality. 24 days of expected trading halt / suspension. That's circa $300K in interest / fees. Not an insignificant amount.