These are the sequences as i understand it. CS borrowed stock -...

These are the sequences as i understand it. CS borrowed stock - probably around 30 September 2015 as on that date it was disclosed that there was 600,000 short - look at shortman website. Since then you can see from around 18 October that CS has been selling stock virtually continuously. They have returned some stock to the person they borrowed from in late January but then they also borrowed more and in February they have borrowed a whole lot more so that they went over 5%.

So they have already had their clients shorting the stock but the clients obviously want access to more stock. I am not convinced that CS dont act for themselves sometimes so that in fact they can short to make a profit as well.

We are now seeing the same behaviour we saw last month and that is to lodge a wedge in the stocks sale queue - There is often one that stays there with a single order to sell over 200,000 shares. Obviously all other poor mere mortals have to sell at below that huge sell order and hence they will always make money - over time after successive processes of the theme they will have pushed the price way down and they cover.

The solution - wait until all the stags have taken flight and then let the selling dry up. The base price is probably around 53c - people wont want to sell below that if its going to be paying around 1.8c fully franked - thats around a 5% (including franking ) dividend.

So I think the level at which this becomes a hold and not a share that you would part with is between 50c and 53c.

I am looking to them doing well in the second half.

However Peter Doobes did note the one weakness - the cash flow. So its obvious that the shorters saw that as well, hence CS getting more loan stock on 10 February 2 days after the announcement of the half year.

So we are in the eye of the storm and it will be with us for the next 6 months.

I reviewed my position - The business is delivering. There will be a number of people who will play into the shorters hands they will sell their shares and the price will fall. But I believe that those that understand the opportunity and where the company is headed will hang in there.

What I am hoping for is that a few of my plans come together and I can load up on cheap stock. I would love to put together a group with around $8 to $12 million and play them but in this volatile market finding those parties is not going to be easy.

I would probably have sold out if I didn't know the company needs nothing to succeed - It has done the big deal. It has issued the shares needed to do the big deal. It's unlikely it can swallow any more at the moment. So it just has to put these plans together to make the things work effectively. If , as we suspect , the cash flow sorts itself out - the business continues to make progress and the second half is as good as we believe it could be these shorters may well get seriously burned.

I am a long term holder so the movement over the next 12 months does not affect me and I can hopefully get some cheap buying opportunities.