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发帖数: 16971 | 1 What typically happens in these situations is that the victim company has to
massively dilute its share structure from the constant paying of the
monthly burn rate with money received from the selling of “real” shares at
artificially low levels. Then the goal of the naked short sellers is to
point out to the investors, usually via paid “Internet bashers”, that with
the, let’s say, 50 billion shares currently issued and outstanding, that
this lousy company is not worth the $5 million market cap it is trading at,
especially if it is just a shell company whose primary business plan was
wiped out by the naked short sellers’ tortuous interference earlier on.
The truth of the matter is that the single biggest asset of these victim
companies often becomes the astronomically large aggregate naked short
position that has accumulated throughout the initial “bear raid” and also
during the “cellar boxing” phase. The goal of the victim company now
becomes to avoid the 3 main goals of the naked short sellers, namely:
bankruptcy, a reverse split, or the forced signing of a death spiral
convertible debenture out of desperation. As long as the victim company can
continue to pay the monthly burn rate, then the game plan becomes to make
some of the strategic moves that hundreds of victim companies have been
forced into doing which includes name changes, CUSIP # changes, cancel/
reissue procedures, dividend distributions, amending of by-laws and Articles
of Corporation, etc. Nevada domiciled companies usually cancel all of their
shares in the system, both real and fake, and force shareholders and their
b/ds to PROVE the ownership of the old “real” shares before they get a new
“real” share. Many also file their civil suits at this time also. This
indirect forcing of hundreds of U.S. micro cap corporations to go through
all of these extraneous hoops and hurdles as a means to survive, whether it
be due to regulatory apathy or lack of resources, is probably one of the
biggest black eyes the U.S. financial systems have ever sustained. In a
perfect world it would be the regulators that periodically audit the “C”
and “D” sub-accounts at the DTCC, the proprietary accounts of the MMs,
clearing firms, and Canadian b/ds, and force the buy-in of counterfeit
shares, many of which are hiding behind altered CUSIP #s, that are detected
above the Rule 11830 guidelines for allowable “failed deliveries” of one
half of 1% of the shares issued. U.S. micro cap corporations should not have
to periodically “purge” their share structure of counterfeit electronic
book entries but if the regulators will not do it then management has a
fiduciary duty to do it.
A lot of management teams become overwhelmed with grief and guilt in regards
to the huge increase in the number of shares issued and outstanding that
have accumulated during their “watch”. The truth however is that as long
as management made the proper corporate governance moves throughout this
ordeal then a huge number of resultant shares issued and outstanding is
unavoidable and often indicative of an astronomically high naked short
position and is nothing to be ashamed of. These massive naked short
positions need to be looked upon as huge assets that need to be developed.
Hopefully the regulators will come to grips with the reality of naked short
selling and tactics like "Cellar boxing" and quickly address this fraud that
has decimated thousands of U.S. micro cap corporations and the tens of
millions of U.S. investors therein.
http://www.hotstockmarket.com/t/68486/facinating-article-on-cel |
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