I think this was announced yesterday and I have contemplated its...

I think this was announced yesterday and I have contemplated its significance...one could imply that their attitude to the risk of the company itself has changed negatively. However, the way these things work amongst brokers is rather that they have reached exposure risk limits.

Therefore it says to me that one of two things has likely occurred

1. the long positions on margin have increased so their net long/short exposure on margin has reached the limit...or

2. the short positions that were formerly in place have reduced substantially...again so that the net long/short has reached the limit.

There is another scenario of the shorts having increased so that their limit has been reached on a net short...but I have discounted that based upon the relative strength shown which suggests that shorts are not increasing.

I'm interested in other views.

regards
DF