Ann: Becoming a substantial holder, page-4

It can be any of the above, depending on who it is and why they are becoming or changing or ceasing their substantial holding.

Becoming or increasing a substantial holder could mean that they are buying shares. It could also mean that shares that they earlier loaned out to short traders are being returned. Shorters returning shares generally means that they believe they have reached the bottom of a downturn and have covered their positions. If the substantial holder intends to hold the shares, it's generally a good thing. If they intend to trade the shares, they could already be selling by the time the announcement has to be made.

Reducing or ceasing a substantial holding could mean they are selling shares. It could also mean that they are loaning shares to short traders who believe the share price will weaken. In this case the shorters have probably already dumped the shares on the market by the time the announcement is released.

My view is that it's impossible to know the reasoning behind these substantial notices, unless the holder clarifies their position. And the time allowed before the announcement has to be released means that the events have well passed by the time we learn about them.

I try to build a solid understanding of the business and invest or trade accordingly.