Inquiry, page-35

Thanks Dragon for pretty much confirming my suspicions which probably also suggests that most local institutions might be doing what your doing in order to take advantage of the likely slide in $Aussie.

what your opinion of Short Sellers .Dragon? .. I dont worry about it really because when they sell someone else is buying. I dont view the Short sellers as dumping stock deliberatly but rather they speculating the sp will drop anyway for reasons other than their actions and their profit will in their opinion come from buying back in slowly in order to make that arbitage profit as big as possible. I cant see Short sellers causing the prices to fall before they sell otherwise their profit would be smaller and of buying in cheaper would be less likely surely.

What short selling does is artificially increase the supply of shares available to the market a bit like a banana republic printing more money and running risk of debasing the currency but in this case the company capital and one way for a company to cash in is to do a capital raising & potentially snooker the short sellers and the share lenders who imo should know better.

I dont personally agree with govt approving Short Selling as a practice but I dont feel threatened by it as long as i know in a timely manner that it is occurring or likely to occurr. It might even give me a clue as to their opinions that they think prices will drop maybe.

The stock market is what it is to offer liquidity to those who wish to sell at any given time even if its not a good reason or good time to sell for some, but it offers potential buyers with the cash to buy on the sp drops and that surely must be a positive. In due course if the company put the real runs on the board with good & promising sales & profits then the share price will rise and sometimes the shorters will be left without a seat to sit on and lose their shirts.

Some people complain of big transactions going thru at the end of trading days at lower prices but these are sometimes institutions wanting to take a capital loss now and shift the capital
Gain into another period of a company they wish to hang onto and they dont really want to sell out. Theres a hundred different reasons the share market acts the way it does and some reasons I never heard of i bet too.

Insider trading is illegal but i argue if you were to risk your own money say $million, would it not be worth your while to have someone apply for a job even as an unskilled worker or cleaner to keep his ears open for any information so if the word is the company is losing sales or losing money then you would want to know about it? Most times the workers on the floor know whats going on before the accountants find out and staff do talk without knowing about insider trading laws. Imo this law is silly to expect investors to rely on brokers only to give then their opinion / analysis on any listed company status.

All opinions welcome even if you dont agree with me.