cudeco shorting activity, page-246

Jantimot, it is just simply based on supply and demand. If the shares offered for sale by the shorters are exceeding by far the buying demand, the end result will be that the share price will fall. And it will also depends on how many shares the shorters will have arranged to have at their disposal, to continue on keeping up the selling and pressure on the share price.

With that, I am not talking about the everyday punter that goes out and short a small amount of shares or even up to say 100k shares, but I am talking about the big end of Town people, the likes of the Hedge Funds, that have got some very deep pockets to allow them to do what they want to do.

I can speak from past experience here in having being caught out badly with a company that I was invested in, in the USA.
The shorters at the time got into the act in a concerted effort and sold so many shares while keeping up the pressure on the sp, that the sp itself reached such a low level that it forced the company into a position that it couldn't even raise capital fundings any more. If my memory serves me right, they shorted more shares than the actual total shares on issue by the company.

I am sure that you'd know what happened to that Company after that.

I give you though, that the shorting at the time was not normal and it was in fact the Naked shorting type of things but, when the mud hit the fan, and the Regulators started asking the question, the Grandfather's Clause was requested and applied for, and the poor shareholder has being left hanging out to dry.

It was only after the GFC hit the fan like an avalanche of crap, that our regulators put a temporary stop to the naked shorting, but not before.

So while I agree with most of your comments, I disagree with some others because I am looking at the generality of the case, and as to what some shorting can do.

I will repeat it once again though, that, as the shorting of shares is legally allowed in this Country and in many other Countries, I am prepared to accept that it is my own responsibility to either play the game as it is written, or just move on.

IMHO, the ones that are complaining are the ones that probably didn't do their proper due diligence and applied their findings accordingly, before having parted from their hard earned cash.

I am also confident that, if the shorters were to get caught out, and with their pants down and on fire, the ones that are doing the complaining now, and whinging like there is no tomorrow, they wouldn't be complaining at all, but just laughing their heads off instead.

I will make it clear once again that I am not a shorter, and that in all of my years of investing, I have never ever shorted one single share. PERIOD!!

Cheers mate.