Hi JK and Mongo ... In regards to short selling ... all...

Hi JK and Mongo ... In regards to short selling ... all institutions (fundies) should be banned from lending stock that is not theirs ... a super-fund cannot lend stock out of any funds they manage. IMHO the case could also be put to the prudential regulator APRA that this practice could breach the trust deed.

Secondly, the ASX limits stocks that can be shorted and limits to 10% ... the problemo is that if a hedge fund borrows the shares from another party and is subsequently shorted, the trade does not have to be disclosed as a short sell. ALL trades need to be disclosed and by whom IMHO.

IMHO also there is a lot of scaremongering at times such as these ... shorters may attack a stock but they cannot hold it down ... the Market is efficient and when a stock appears to be oversold, buyers will move in regardless.

The XJO is trading around P/E of 11 currently against an historic average of close to 15 in anticipation that future earnings could be written-down. We need to remember that price today could seem cheap in 12 months time.


Cheers ... tight stops.


This is only my view ... read the black stuff.