Markie Mills,Don't think anyone was trying to manipulate the...

Markie Mills,

Don't think anyone was trying to manipulate the price of GNC on the open today. We has the SPI 200 futures expiry this morning, so there would have been book suqaring. Anything in the top 200 this morning would have had some decent volume go through. That is what normally happens on the day of futures expiry.

This stock is held back at the moment due to the large stock overhang after their recent 9 for 10 raising.

When I have time over the Christmas break, I will post a more detailed note on GNC. I'm sorry I just don't have the time right now. However, before you go extensively short GNC, have a think about the Viterra - ABB bid and look at those multiples. Compare the assets that ABB had and what GNC has right now. Next, compare their respective market caps. and debt levels. You will find that the replacement cost of GNC's silos etc. are worth more than their enterprise value (market cap. + debt).

Obviously the weather conditions in QLD and NSW have affected GNC. Have a look at the Viterra acquisition of ABB. I believe ABB is going to provide their best profit in decades due to the spring rains in SA. VIC has been good for GNC, however, NSW and QLD need to come to the party. Anyway, when I have time to post a more detailed note on GNC, I will point out the pros and cons.

At this point in time, under $6, I would not be attempting to short GNC. This stock is heavily owned by the farming community who are really retail investors. They effectively let 20+mil shares lapse in the retail rights offer. That was when the shares were still trading around $7.00 and they were offered shares at $5.65. This gives you an idea of the amount of stock overhang in GNC. It needs time to digest the huge stock overhang.

As always, there will be differing views on any given stock, so I do respect your decision to go short. However, play it safe and don't go too far in. The short GNC trade is starting to get crowded now.

Happy investing.