cdu shorting activity, page-176

"If thats the case the argument that most use about shorts having to be covered pushing the price back up is really a crock isnt it."

Brett yes its a crock they dont have to cover on market they can keeping borrowing stock and pay the interest,

Example - Hoots borrows a orange from Bret paid $1 for it but its now worth $1.10 on the open Market -Hoots sells it for $1.10 and pays Bret the interest on it - Lots of other people borrow oranges and sell them . When Bret wants his orange back Hoots could go and by one on market or he could borrow one from Max and give it back to Bret then Hoots owes Max an orange and pays him interest on it. Could go for ever - But yes at times there are short squeezes where shorters have to scramble on market to cover - The most notable for CDU was the day in 2006 when it went to $10.


Re Aussie dollar All exporter's benefit from a lower Aussie dollar unless their hedged or selling their product in US dollars - Until very recently most dealings from Aussies to Chinese companies was in US dollars but I believe Aussies can now export on the AUD - RMB exchange rates


hOOt