KAR 0.00% $2.16 karoon energy ltd

Froggy, We I was thinking that if you have significant short...

  1. 18 Posts.
    Froggy,

    We I was thinking that if you have significant short positions then ideally you want to have control over how they are bought back. i.e. at the lowest price. They (shorts) also need to be bought back with little or no impact on price if possible - which can be difficult with high volume stocks where the order book flow can not be as influenced as readily as one with low volume. KAR is low volume so is ripe for controlled order flow. So if you have short positions that you want bought back and you (or other II's etc) are in also in control of that share buy back then the shorts can be bought back using their own order flow designed to minimise price impact as opposed to general market order flow which would most likely have a price impact if significant enough over time.

    If those II holders are also net long then it benefits them that the buy backs are executed at the lowest possible price to minimise the effect on the overall market cap of the company. If they are also accumulating ahead of this well then obviously that benefits them also.

    I would expect once this uncertainty is over post AGM and time is heading towards the drill results for K-2, which as you say are probably stacked in the favour of success, that the short positions to reduce considerably. This isn't a 1 in 5 at best wildcat. Petrophysics (from the basic information I've seen) for this and other wells in the vicinity look good.
 
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Last trade - 16.10pm 29/03/2024 (20 minute delay) ?
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