Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Shares in Orsu Metals (OSU) have jumped over 200% in the last 24 hours on word that there is another short squeeze in the market. The facts are now this. A regulated market maker has failed to deliver stock to a private investor, this is now public knowledge, 30 times average daily volume has poured into Orsu today (up from 15 times yesterday) and yet still this share continues to trade. This is yet again highlighting once more the structural faults running through AIM.
Already a member? Sign in
• All premium articles
• Tom Winnifrith’s Bearcast
• Access to all the entire nearly 13 year archive
• ShareProphets Daily Newsletter
Cancel any time
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments
VINES
fsa should thow the book at u trying to get pump and dumps going all the time
Abdiel
Lol Vines, so its BT’s fault? Really?
Looking forward to more on this.
Steve Sutton
A lot of hot air over nothing in my opinion, read on…….
Those buying in here thinking there is a significant stock shortage or major bear squeeze coming may be very disappointed, it is very unlikely in my considered opinion.
Upon reading the article I note the broker in question was HSBC, well they have some form in temporary non delivery of stock. It has happened to me twice concerning Gulf Keystone Petroleum (GKP) with purchases made through HSBC in the past.
Gulf Keystone Petroleum has over 900m shares in issue. There was no material movement in the share price nor any eventual settlement issues. HSBC sourced the stock some days later.
At the time someone else also had stock delivery issues re GKP via HSBC and posted this on ADVFN here…http://uk.advfn.com/cmn/fbb/thread.php3?id=21783165&from=353896#firstpost
I have received this standard letter from HSBC regarding very temporary stock delivery issues a few times this year on other purchases not related to GKP also.
Note also the known pump and dump ‘names’ operating on the OSU ADVFN bulletin board.
Buyers of OSU may wish to tread carefully therefore.
Bobby Chariot
Down 18%, doesn’t appear to be any squeeze at all.
Ben Turney
@Vines – What a foolish comment
@Abdiel – my thoughts exactly!
@Steve – I’ve also noted the settlement issues in other stocks before, but until the NEW scandal, I doubt think many were aware of the implications. Let’s see how things develop over the next few days, but if there is a problem with Orsu it could be the tip of an ice berg.
I’ve had concerns whether or not this is a pump and dump. I just posted an article to see if anyone else is experiencing settlement problems. We should know by now if they are.
Ben Turney
@bobby – as I just said in my other piece the price tells us nothing at the moment. The only way to know is whether or not Monday’s T+2s have been settled