Ann: Becoming a substantial holder, page-16

shorts are always looking for a minimum 10% from where they’re placed, there is no real set target lower price, the purpose is to generate turnover, shorters are skimming the turnover to accumulate stock, that stock is free carried so it doesn’t matter what it cost, the more free carried the more they have in stock to return to lenders and the more they can have to ride the escalator up once the turnover based on stop losses stops, cxo is an ideal stock to play due the huge number of shares on issue and the cyclical variability of the business, the % short reported each day is the sum of shorts opened and closed that day that get reported which may not be a true figure anyway but it’s not bad as an indication, this stock is now a plaything until the stop losses are churned through which will take a while due the rolling nature of buys or until the fundamentals change direction in a huge way and the shorters take out margin loans and start pumping and tripping on the way up.