Kimber Investors:

 

Many of you, I'm sure have noticed as I have that the short interest, i.e. total number of shares sold short for Kimber is only about 35,000 or so on the Amex. What we have been failing to realize is that 1.2 million shares have been sold short on the Toronto Exchange.   Remember, Kimber is a dual-listed stock. It appears on the Toronto Stock Exchange as well as the Amex. In other words, the same shares essentially trade on two different exchanges.  The Canadian side is where all the shorting has been going on.  So what does that mean?  It means a lot of people are still betting that Kimber is going to go back down.  Why is that?  I'm not sure.  There just is not that much to hate about this company or this industry. Those heavily short who at one time believed they were going to replenish their shares by taking part in the recent financing deal must realize by now that is not going to happen. Are they hoping against all hope? Just think of that small group of German Generals holed up in Berlin in April of '45, working on a new  plan.   What were they thinking?  I'd be thinking, "Where's the back door out of this place?  And make sure I have some gold and silver, because I'm not too sure how much my Nazi currency will be worth in Argentina."  But we're not beyond doing dumb things in this country or time either.  Have you ever wondered why a high school basketball coach calls time out when his team is down by 35 points with 40 seconds left in the game?  Fortunately my dad enlightened me on this when I was very young.  He turned to me once during such a game and said, "Son, do you know what they're doing over there?  They're working on the 40 point play."  I think there are a lot of shorts huddled up in Canada right now working on the 40 point play involving Kimber.  I do not have high hopes that they will be successful, however.  

Sometimes, it's very hard to admit you've made a baboon of yourself especially to your business associates.  "Hey, George, How's the naked shorting of that junior gold miner going?  I bet you're cleaning up."   The only thing George is going to be cleaning up is his underwear, which by the virtue of the fact that Kimber is still hanging around 90 cents, he has not started crappng in just yet.  But the crapping will come.  Oh yes, the crapping will come.  Sphincter tone is loosening day by day for these guys.  Arm yourself with knowledge, my friends.  Understand the fundamentals.  And say something nice to someone today. You never know, he or she might be 100,000 shares short Kimber resources.   SB