RE:RE:FDR and news release etiquetteSounds like you’ve done a serious examination of the topic, Scorpio. I guess I can see how your scenario could play out at a brokerage firm, especially if those provisions are buried deep in the fine print of an account agreement.
Your idea of defeating naked shorters by putting in open sell orders for our FDR shares at very high prices sounds intriguing. Such “frozen” FDR long positions might fool a brokerage’s back-office credit department algorithm. But it could always be over-ridden by human intervention of credit officers if the biggest naked shorters are also the firm’s best trading customers. Which they probably are, at least in terms of gross commissions generated.
Even if there is no active naked shorting of FDR currently underway, just give it some time. The absolute magnitude of our price swings, % magnitude too, probably go up in lock step with our share price increase. Our moment of greatest vulnerability to naked shorters may be somewhere between $3 and $4, as the super-aggressive (but perhaps not so deep-pockted) bulls step in on margin.
Not to say the shorters can easily win. Or win at all. Who knows just how much excitement might be buzzing around FDR by that point?