cdu shorting activity, page-406

Hi jadel,


I reckon shorting is a scourge to the share market when it is practised outside the rules.

Shorting is permitted as it is intended to facilitate natural price discovery in the market.

Shorters who make the correct call on an over-valued share price ensure that prices retreat to appropriate levels; alternately, shorters who call share prices incorrectly should have to re-purchase shares on the market, thus helping to restore correct pricing levels.

However, rarely do we see shorters doing that; and when cover is needed it seems to take place off-market with no price discovery taking place.

On examining CuDeco I feel the company has been a victim of manipulative shorting from my observations.

Indeed, I hope WM is successful in having CDU securities exempted from shorting, particularly while CuDeco is not yet earning revenue from mining as yet.

cheers,

Max