Hi mittaThe level of shorts at around 15 mill is pretty much a...

Hi mitta

The level of shorts at around 15 mill is pretty much a constant in LNC. I am watching to see if that number rises substantially or not.

The Co atm is not living up to its advertising and also the interest in it has noticeably waned. The oil production numbers are due soon. If they disappoint then I expect the SP to get another battering. The nail in the coffin would be if that then encouraged increased and sustained short interest.

The poor result from the Alaska drilling campaign has opened the Co up to probable cash-flow problems [IMO]. What needs to happen is oil production comes in according to guidance. If the deal that the Co has flagged with Exxaro comes along on schedule, the current level of short interest will not matter.

So, the level of shorts do not have to reduce for the SP to take off again [IMO]. In the short term [by the end of this week], I think the SP has to increase to 1.85 or better before it will attract any buying though.