DLS Chart Update - 22 February 2015, page-4

nordesmic

I wouldn't get to excited about Seven Group. People are generally better sticking to their knitting (businesses they know). You saw what happened to Gina's investment in Ten. While the oil price is this low IMO companies will just be concentrating on cost cutting and getting their own houses in order. I wouldn't be expecting any corporate action in the Australian oil/gas patches, that generally would be more likely to occur during periods of share price growth, when you can leverage the value of your script relative to an underperformer or use excess cash generated from profits. People will be preserving cash at the moment.

I'm not just trying to be argumentative nordesmic, but how do you know the movements in the short positions aren't partly due to the convertible note holders engaging in some form of arbitrage, like delta hedging. In which case the level of shorting activity may have nothing to do with sentiment for oil or the DLS story?

Eshmun