shorter stratagy as descibed by charlie aitken

a summary of the shorters strategy from charlie aitken
His desciption if you relate it to lynas is almost exact.

Even the 4 million sell order at the close yesterday at 4.10 at the match ticked the price down

enjoy the read and remember as of the 13th of october 90 million cumulative short as disclosed with asic



The new fast money game in town is to aggressively short any company that needs further debt financing for growth or has a large existing debt roll
coming up. The theory is that debt markets remain closed (ps that is absolute rubbish) and that the companies being targeted will be forced to raise
discounted equity (where the shorters will cover their positions).

Debt investors take into consideration equity prices and existing debt prices when they bid on new debt and set the yield. So in predatory short trading
theory if you destroy the underlying equity price you can change the cost of debt or even scuttle the chances of a debt raising, therefore increasing the
chances of a discounted equity raising.
I said yesterday the classic example of this in the last month was the predatory shorting attack on Seven West Media (SWM). But these shorting attacks
are more than just liquidity. They also involve manipulation of CDS rates and feeding the story-hungry financial press headlines that assist in creating
the self-fulfilling downward spiral. You will also notice that the broking firms sponsoring the biggest short positions in the given stock also then start
running “downside scenario” analysis in their fundamental research, while broker sales desk repeatedly send around the negative press headlines they
have helped create. They also organise “conference calls” with their own newly bearish analyst. The IOS order indication book also is then swamped
with indicated “sell orders” and the SEATs screen layered with seller orders. The stock is always ticked down in the 4.10pm closing match. The final
insult is when the investment banker from the firms involved ring the corporate suggesting they can raise equity to “end the shorting attack”