I think the consensus is that the ship damage model is a bit off for some ships. That being said, it is sometimes just a matter of time. Wait a few hours or so and you may be surprised to see the ship eventually.
Now, with all things working right, I suggest you place one fish under the stack, a 2nd fish on the rear third and if needed a 3rd fish on the first third. Hit the target as low as possible, but if you need a 3rd or 4th fish, place them high in my opinion.
Why at or near the water line? You gotta spread the love(damage) for no other reason. I believe O'Kane or Calvert experienced first hand how effective it actually was to blow the side out of a ship(espeically when you run the risk of having afish run too deep and miss altogether). Also in theory, especially if you are after a tanker, the hole in or near the bottom doesnt cause any flooding if the deck seals hold. The floating oil will not make room for more water to flood in. But if you place a hole low and high, the oil can spill out the top hole allowing water to take its place through the bottom hole. Its like punching an air hole at the top of a bottle to make it easier to pour...lets you get that pesky air or fuel out that is pushing against the incoming water.
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