ADN 8.70% 2.1¢ andromeda metals limited

A couple of points:You say shorting is hard and risky. Agreed....

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    A couple of points:

    1. You say shorting is hard and risky. Agreed. So is robbing a bank. Being difficult and risky doesn’t make something okay.
    2. You say shorters offer a different view. Agreed. They don’t have a monopoly here. Plenty of other drivers here to keep investors on their toes, such as competitors, opportunity cost, shift in trends, etc.
    3. You say shorters uncover fraud. Occasionally. They also sink good companies. They are destroying junior miners in Canada. The vocal shorting crew that hit us have cried fraud so many times, eg WTC, FMG, AXE.
    4. You say shorters help deflate bubbles. This is the price discovery argument. There are plenty of shares that tank, without shorters, such as stock without borrow. Why? Because holders can always sell their shares.
    5. You say shorters save people from money. Incorrect. Shorting depends upon the PERCEPTION of a company being highly overvalued to make a profit. At best, shorters are waiting until the stock goes well above fair value before hitting the brakes. Here, people still loose, the shorters aren’t saving anyone, they are just taking a cut from people’s losses. At worst, the shorters are distorting the situation, building a perception that is untrue. Either way, shorters aren’t helping anyone, except themselves.
    6. You claim ADN was grossly overvalued. Perhaps it was, perhaps not, only time will tell for certain. Regardless, it isn’t an undeniable self-evident truth that it was overvalued. NPV measures the value of an investment relative to capital, not shareholdings. According to the old PFS, ADN will achieve an average annual after tax cash flow of $40M. On a PE ratio of 20, that puts the mkt cap at $801M. That's without nanotech, HPA, coatings, or cement, etc. Just the base case ceramics. Perhaps none will come to fruition. But given the work undertaken to date, I think the risk is in our favour.
    7. Using a ute analogy, you implied holders were stupid for not selling. Just because the price was ~45c, doesn’t mean everyone could have bailed at that point. There wasn’t an infinite supply of buyers at the point, or indeed is there ever at any price point, for any company. Secondly, many, such as myself, prefer to hold to obtain CGT discount. That’s a valid strategy, people shouldn’t be mocked for that. Thirdly, some people aren’t just in it for a quick buck, but want to support Australian companies that are doing something socially important. Finally, some people have a much longer timeframe, and find that strategy works for them. They might not care about the day-to-day SP, but still care if a group is actively trying to sink the company with half-truths, and worse.
    8. You say shorters are morally upstanding. So far, all I’ve seen are vulgar racist memes, ludicrous claims of fraud (without evidence), and a whole heap of blow-ins calling us baggies, taking ghoulish delight at our losses.
    9. You said the proportion of shorts is low. Correct. But its been strategic, with the sharp drops correlating with a high proportion of shorts on volume during those trading days. Also, see points 7 & 8. Its not just about the SP.
    10. You had a shot at ADN publishing comments on shorting. Well, there should be more visibility on shorting. Much more. Shorters and shorting should definitely not be immune to criticism, or demands for greater transparency, accountability.
    11. You said short & distort and pump & dump are bad. Agreed. Both can destroy lives, the former also companies.

    Bottom line is: shorters benefit from others' losses. In what world can that be moral.
 
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Last
2.1¢
Change
-0.002(8.70%)
Mkt cap ! $65.31M
Open High Low Value Volume
2.2¢ 2.2¢ 2.1¢ $388.3K 18.16M

Buyers (Bids)

No. Vol. Price($)
29 7256050 2.0¢
 

Sellers (Offers)

Price($) Vol. No.
2.1¢ 48187 1
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Last trade - 16.10pm 29/03/2024 (20 minute delay) ?
Last
2.1¢
  Change
-0.002 ( 10.9 %)
Open High Low Volume
2.2¢ 2.3¢ 2.1¢ 11647777
Last updated 15.59pm 29/03/2024 ?
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