Short Selling Opportunity – Sims Metal Management

Sims Metal Management Limited (ASX:SGM) is a business that chose not to pay a half year dividend due to a weak outlook. SGM has lost support at $9.70 and is starting to look like heavy metal !!!

Disclosure: The Edge Fund has short sold SGM earlier today at $9.70 (Current price $9.61)

3 March 3:30pm
Covers 1/3rd at $9.52 (+18 cents or +1.9%). Hold remainder for Target 1. Makes average price now $9.79.

4 March 11:20pm
Re-shorts the 1/3rd covered yesterday ($9.52) at $9.65. So, average now on 150% of normal position now $9.74. So now +9 cents on 150% of normal position. Looking to cover this 1/3rd at lower prices and hold remainder again.

4 March 12:20pm
Covered that 1/3rd again at $9.62. Barely worth mentioning. Average short price now $9.80.

4 March 3:40pm
Covered another 1/3rd at $9.64. Looking like a small green doji which puts the odds of upside at 50/50 now. Average short price on remainder now $9.96. Will see what tomorrow brings.

5 March 10:10pm
Covered remainder at $9.75. (+21 cent on remainder or +2.1%)

11 March 9:30am
Re-shorts at $9.63.

12 March 10:35am
Covered half at $9.44 (+19 cents or +2%). Average now $9.82 on remainder.

12 March 2:40pm
Covered remaining half at $9.52 (+30 cents or +3%) on remaining half that was averaging $9.82.

14 March 3:40pm
Re-shorts at $9.52.

17 March 10:15 to 10:25am
Covered all between $9.20 and $9.27 with average $9.23 (+29 cents or +3.1%)

This article is published by Dean Mico.


The information provided in this article is intended for general use only. The article is intended to provide educational information only. Please be aware that investing involves the risk of capital loss. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein.

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