TLG Ann: S&P DJI Announces March 2023 Quarterly Rebalance - 3rd Mar 2023, 5:03pm

[annb0t]

TLG Ann: S&P DJI Announces March 2023 Quarterly Rebalance
Price Sensitive: Y
Date: 3rd Mar 2023, 5:03pm

>>> Read announcement: Google: TLG Market Announcements

 

[TentCity]

Gee - I can’t wait to see how much more I get blamed for pumping and dumping now that Talga has entered the ASX300 .

We’ve survived the typical small cap volatility stage and now we enter the ‘manipulation’ stage with the additional institutional holdings and shorting that comes with it!

In all seriousness, it’s a great sign of the maturity and level of market recognition that Talga is getting to enter the ASX300 and with a bit of luck, MT can nail down the permits, offtakes in the next few months to reduce some obvious areas of concern or weakness these groups may target.

I still expect some more churn of the register early next week as the newly issued shares find a home and a new floor price is set. Then I expect attention will turn to the 15th of March and the joint CRM & Net Zero Acts and how Talga may be a significant beneficiary may drive renewed investor demand. Then hopefully the permits are signed off in early April and we can move on to finally becoming a ‘developer’ instead of an explorer!

 

[cosors]

Gee - I can’t wait to see how much more I get blamed for pumping and dumping now that Talga has entered the ASX300 .

We’ve survived the typical small cap volatility stage and now we enter the ‘manipulation’ stage with the additional institutional holdings and shorting that comes with it!

In all seriousness, it’s a great sign of the maturity and level of market recognition that Talga is getting to enter the ASX300 and with a bit of luck, MT can nail down the permits, offtakes in the next few months to reduce some obvious areas of concern or weakness these groups may target.

I still expect some more churn of the register early next week as the newly issued shares find a home and a new floor price is set. Then I expect attention will turn to the 15th of March and the joint CRM & Net Zero Acts and how Talga may be a significant beneficiary may drive renewed investor demand. Then hopefully the permits are signed off in early April and we can move on to finally becoming a ‘developer’ instead of an explorer!

Yes, now the sea gets a little bit rougher but only a little bit I think. The shorts have reacted immediately and have risen. The same with Weebit who have also risen with the entree in the ASX300 => with whoping ~1.2B MC. They were at 0 before.
But really absolutely curious for me is the highly shorted Brainchip in the ASX200. They should have descended from the 200 into the 300 but they did not. Apparently the shorters are not yet willing to let them out of their clutches. Maybe it is because with a relegation down to the ASX300 some funds would have had to reduce the shares from their portfolio but many of the shares are on loan to shorters. Who knows. After over three years I still don't really understand the ASX whether it is a club office on the golf course
Of course, this is all just nonsense on my part.

 

[Semmel]

The increase with short shares when entering the asx300 could also mean that the rebalancing is achieved through shorted shares. Imagine an institution trying to buy millions of shares in an illiquid asset. Instead of buying on the open Market, they short the shares and add them to their portfolio. Then over time close the shorts little by little when opportunity arises to buy shares on the open Market.

 

[Rayster]

Looking for advice here. Let’s say the mining permit doesn’t fall before September. Will TLG be relegated out of the ASX300 giving all the shorts their payoff? Just curious to how this could play out.

 

[anbuck]

The increase with short shares when entering the asx300 could also mean that the rebalancing is achieved through shorted shares. Imagine an institution trying to buy millions of shares in an illiquid asset. Instead of buying on the open Market, they short the shares and add them to their portfolio. Then over time close the shorts little by little when opportunity arises to buy shares on the open Market.

I don't follow. After they close the short position, the borrowed shares would go back to the original owner, so the institution would end up with no shares at the end.

 

[Semmel]

Well, they need the shares in their books to track the index. So A shorts shares and sells them to B, who shoes them in the book. Then A buys the shares on the open market in small chunks to not make the share price go crazy. As it is often the case, the share price might get lower after some time of the inclusion and A might even make a small profit.