heavy shorting going on, page-4

Nonic - my contact tells me that it is being heavily shorted both here and as CDE in the US and Canada. He wouldn't/couldn/t say by whom, but given that spread of shorts, I'd suspect either international institutions like Goldman Sachs, Deutsche Bank, etc, and/or international hedge funds.

If they short it both here and over there, then there is no discrepancy for arbitrage opportunity, and the downward price push becomes self-perpetuating. Each market thinks its following the others....

As for fair value - I'm not a fundamental analyst, but my contact (who is an analyst at a major brokers, by the way) hints at $Aus 6-8 currently, with potential to be much higher.

Obviously I can't post on here some of the private conversations I've had with him - he'd simply stop talking to me. But suffice to say that CXC would appear to be undervalued, oversold, and heavily shorted.

You can see what effect this has on a stock price when you look at the chart for PDN over the last few months, and then realize that PDN was the second most heavily shorted stock on the ASX throughout that time. (Babcock and Brown was the top of the list, in its various guises).

Over the longer term, CXC would seem to be an outstanding stock to stick in the bottom drawer and just forget about it.

I also am a Dines subscriber, and his predictions for silver would be worth following, given his track record for most other things.