Megaport Limited

ASX:MP1

Megaport Limited

ASX:MP1
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$13.55 (+1.8%)
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#44
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Reports (9) My Report Forum Investors
Forum Topics MP1 MP1 Becoming a substantial holder

Pinned straw:
raymon68
Added 10 months ago

Form 603

Voting power (6) 5.50% by State Street Corp

as Bear says ..A substantial shareholder is a person or entity that owns 5% or more of the voting shares in a company.

MEGAPORT LIMITED (ASX:MP1) - Ann: Becoming a substantial holder, page-1 - HotCopper | ASX Share Prices, Stock Market & Share Trading Forum


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raymon68
10 months ago

Ok #Nnyck. State Street are just setting up an infantry line so to speak. They can then lend / short MP1.

https://strawman.com/Nnyck777

6
Bear77
10 months ago

@raymon68 - @Solvetheriddle is correct - State Street are one of the three largest ETF providers in the world - see here: https://www.investopedia.com/articles/investing/080415/5-biggest-etf-companies.asp ...so State Street becoming a Sub for MP1 is more likely to do with fund flows through their ETFs (ETF demand) than to do with shorting. I jumped the gun and assumed they were one of the usual shorting suspects, but State Street are huge in ETFs, with 139 ETFs under administration, including some big ones like the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 Index and has $391.93 billion in AUM (assets under management) and SPDR Gold Shares (GLD), which tracks the spot price of gold bullion and has $59.78 billion in AUM. There are a lot of smaller ones as well. They have 17 ETFs based here in Australia: Australia Fund Finder & ETF Screener | SPDR (ssga.com)

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Nnyck777
10 months ago

State Street Substantial holder notices give me PTSD. Many, many of these as I saw Zip shorted to smithereens.

6
Bear77
10 months ago

Yep, and there a few players who are regularly involved in shorting, meaning that they actively short companies themselves or they regularly buy stock to lend that stock to others for the purposes of shorting. State Street is one of those players. This is no surprise, Bevan Slattery has been in a war with shorters for years over various companies that he has founded, such as NextDC (which he no longer is a substantial shareholder of himself), Megaport and Superloop. Just saying, you'll see a number of companies, like JP Morgan, State Street, Mitsubishi UFJ, regularly becoming Subs and then ceasing to be Subs, and it's just part of the shorting game and should largely be ignored. You'll also often see mirror notices when an entity that is controlled by a larger entity becomes a Sub or drops below 5%, as both entities are required to lodge the forms, even though it only a single shareholding.

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Solvetheriddle
10 months ago

@Bear77 actually i am not sure all of that is correct but it leads to the same answer. the prime brokers are the ones that borrow and lend the stock from the custodians who have effective control. the big ones were (are) MS, UBS, CS (use to be) and i suspect a few other brokers. the prime brokers are usually a subset of larger broker operations. i put state street with vanguard and the other index driven funds that own vast amoutns of passive stock, so i dont pay attention to their changes, which could be index and flow related. i am not too sure if SStreet have a prime brokerage arm. also the fund aggregators like fidante and pinnacle can have changes but thye could reflect changes from one of a number of underlying managers. so not much help. the best ones to monitor are the very active guys who take significant views like Regal but there are many others. the changes here are clear intent. could be wrong

8
Bear77
10 months ago

Yeah @Solvetheriddle - you are right - there are ETF fund flows based on demand - and other similar reasons why these players become Subs and cease to be Subs, so not all movements are related to shorting. I agree with you that the Morgan Stanley, UBS and Credit Suisse are actively involved in shorting, but I also believe Mitsubishi UFJ and their many subsidiaries - which includes Morgan Stanley - are also active in the area. ETF fund flows is an important thing to consider, as you have pointed out, and, as you say, the active high conviction funds like Regal are more important to take notice of than the shorters and the ETF-related players.

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