short data and boa, page-4

Hi That Fundamental Guy.

I think in future, if I see BOA provide a substantial shareholder notice for other stocks I hold, I am out.

The current discussion on shorting NMG does need a bit of thought.

It was my understanding that only stocks with a certain capitalisation could be genuinely shorted i.e. sell stock you do not hold.

This current form of shorting with NMG is rather like selling shares they own or have borrowed and simply sell into the market.

If this is what BOA or one of their associates (Sabre or Matthews) are doing, then once they sell shares, they no longer own them, and need to put in a substantial notice in respect to the shares they now retain rather that declare how many they have sold (shorted).

In any event, I imagine it would be a dangerous game if the fundamentals of the stock improve to the point where there is strength in buying which decreases BOA's opportunity to move the stock at will.

I believe BOA feed off of shareholder uncertainty and exploit it, once there is confidence in that stock, people will buy into the shares offered for sale and this will limit the control BOA have.

At some point, either BOA will buy back the stock they need to return, (unless they have averaged down) and move on to another stock.

It appears that BOA focus on companies in a vunlerable position, therefore I imagine companies which have strong backing are less prone to this activity.

My thoughts only and happy to learn more.

regards.