"transparency i don?t think so", page-7

Ikey,

Was that post a joke? There are plenty of reasons to short a stock and the two you mentioned are probably the least likely. The most likely is that an analyst for a hedge fund believes that CDU was in the short term overvalued and wanted to profit from it's fall. The analyst may feel the resources sector or the market in general is overvalued and merely targeting CDU as an opportunity. Regardless of the motivation there are plenty of reasons why someone would be shorting the stock including an obvious one that the shorter is aware of bad news around the corner. As Zzz highlighted maybe they are aware of a poor finance deal which was absent in the quarterly (who knows, I don't). The options are countless.

Furthermore, no matter what you think, shorting is not illegal and in actual fact is good for market participants. In this example if it were not for shorters maybe CDU's bubble would have reached $6 or $7 before crashing down to $2. Imagine if you were on the end of the purchase at those heights. Shorters assist with price discovery and can save you money on bad short term trades.

With the Dow Jones down 170 on Friday and some storms appearing on the economic front in Europe (Bonds), Japan rating downgrade, Egypt civil unrest etc I think we are going to be testing $3.00 before testing $4.00 again. Here is the thing though if you are a long term holder try not worry about it (I appreciate it is not easy). Look for the long term play which shorters will have no impact on and if the story from WM is to be believed you should do well.

I am the Iceman!