Hi John - Alternative theory of short selling (not necessarily...

Hi John

- Alternative theory of short selling (not necessarily true or close to true)

I think people get caught in an echo chamber, Re:short selling. - it must be evil money makers!, and don't consider the unknowen unknown ( X factor! Thanks Donald Rumsfeld)

Really? The site talks all the time about the global nature and dominant position of TFS going forward, as the only listed sandalwood grower

If I was a middleman dealing iron ore and I wanted to lay off risk, or risk up. I would short/long the Aussie miners - BHP, RIO
.
If i wanted to punt on minerals, I would go long the aussie.

If I wanted to short oil - Canada Looney

Agri output - Caterpiller, John Deere

Indian middleman, holding $5 million dollars worth of sandalwood, or a fragrance manufacturer with $10 million dollars of sandalwood. Where do they layoff risk on a highly opaque good? Enter stage from left, the trusty old mechant banker, that can provide downside risk protection by shorting a publicly listed company in the developed world, with a high positive correlation with the wholesale sandalwood price.


Either that or KKR lays off the risk of a cyclone wiping out their near maturity plantations in the Ord by shorting TFS.

Who knows. But would the shorting cycle have anything to do with Sandalwood auctions in India? Maybe peak shorting occurs at the same time as the auctions occur? I shake my fist at you Sanjeep, Sandalwood baron of Tamil Nadu (note fictional character, has no likeness to Jamie Packer, who likes, canteloupes, but not cherries. Must have something to do with operating casino's)