Consider the nature and source... of the to antagonists here.Shrill and off the mark. Spoils a nice day for the stock.
To all investors here. Seems I hit a real nerve with a few of the ‘unusual’ posters here. When confronted with the truth they resort to demeaning personal yap for divergence. 'Risk' obviously ignored some of what I wrote. Look at his writing style that says it all. ..and isn’t DrJ a treat?
Risk and DRJ have revealed ‘nervous’ characteristics and one can only wonder why.
I am posting this information because I think it is important for all to be aware and let anyone out there know that we are aware. Criminals hate the spotlight more than anything else. This holds true for all junior stocks, especially in Canada. Being preemptive can't hurt. Name calling is what it is.
With respect to the following, it gets complex, and I will drop this subject after this. I hope that some find the information useful for any junior investments they may be part of.
I communicated with BTI management and while they haven’t seen any trouble so far, they do say there are 10 houses involved in the trading. They will be watching for it. Small juniors can do little to fight off or even prove when they are under attack, although there have been some successful law suits now…one of the latest being against a poster on these SH BBs. She is facing a $2.5 million penalty. That’s why I won’t let Risk off with the crap he is now spewing about naked shorting not being a realty.
BTI has to be very diligent because biotech stocks have always been a target of the criminals who naked short, as explained below.BTI has a very good chance of not being affected by such activities for several reasons. There is a fairly small float of about 23 million shares. BTI can blow any potential attack out of the water by nature of its solid business plan, high visibility, immediate cash flow that can grow rapidly with multiple Pharma/licensing agreements, unique product with incredible, $multibillion demand once even a sniff that the first clinical trial on patients looks promising, an excellent management team and much more. Everyone involved will want to see this company succeed…and any odd trading may come under extreme scrutiny. They should know that right now!
You will see that with a naked short set up, a stock is taken to a certain price level and then attacked…see below.
EXCERPT FROM BOOK “DOING WELL ($) WHILE DOING SOME GOOD”
Dr. Jim DeCosta
BACKGROUND
After spending 29 years researching abusive short selling attacks I’ve noticed that the two most commonly attacked corporate sectors involve the junior mineral exploration sector and the development stage biotechnology sector. Naked short selling involves selling stock without first borrowing (or sometimes even locating) the stock. If a naked short seller does not borrow the stock he sold, he will be unable to deliver that stock to the buyer to close the transaction. This is called a "failure to deliver" (FTD). Naked short selling is generally illegal, though market makers are allowed to temporarily naked short for the sake of bona fide market making. FTDs are always illegal when delivery failure exceeds 13 days.
How Phantom Naked Shorts Circulate In the System Like Real Ones:
Exchanges do not disclose whether short sales are naked and supply no information on FTDs. Even worse, in transactions where shares are not delivered, brokerages issue stock IOUs called "share entitlements." Retail customers' account statements do not distinguish between real shares and share entitlements.
FTDs create phantom shares that circulate in the system as real shares. Just as counterfeit currency dilutes and destroys value, phantom shares deflate share prices by flooding the market with false supply.”
The JPM's and bio technology start ups are the most highly targeted sectors for the naked shorts. Here are a few thoughts from one of the NSS experts out there:
“Illegal short selling is often sourced from Canada and Germany where financial services regulation is much more lax than in the U.S. If financial forces want to manipulate stocks down, they can just set up clearing and trading operations in these two countries to launch their short selling attacks.”
People have a tough time with the concept of abusive naked short sellers never, never, never having to cover unless a breakthrough by the preyed upon corporation forces it. In our corrupt clearance and settlement system you need not deliver that which you sold in order to gain access to an investor’s money. This insanity forms one of the many pillars supporting this fraud. Most countries with the notable exceptions of the U.S. and Canada have a “withhold the mark” policy with “the mark” being the investor’s money. If you don’t deliver what you sold you don’t get access to the buyer’s money just like at the grocery store.
When you NSS into a buy order with the cash of the buyer metaphorically “stapled” to it, the target of this crime, you get “first dibs” on a portion of that cash if a downtick should occur even if you never deliver that which you sold. If that isn’t insane enough, the buyer of the never to be delivered shares gets a readily sellable “security entitlement”/IOU credited to his brokerage a/c. This is over and above the number of shares already outstanding. This adds to the “supply” of that which is readily sellable which automatically depresses the share price. Refusing to honor your contract to deliver that which you sold by T+3 therefore not only established a naked short position and thereby giving the crook access to “the mark” it also depresses the share price which gets this cash flowing into the wallet of the criminal all in one fell swoop. This money of the investor becomes “free money” to any party willing to break their contract and refuse to deliver that which they sold.
The question arises, why would you EVER cover this naked short position if you not only have already been given access to the targeted cash of the original investor but the very act of covering would drive the share price up which would then force you to aim a portion of the stolen cash to your clearing firm in order to meet your “marked to market” collateralization requirements. Would you not instead be highly financially incentivized to continue to naked short sell into yet more buy orders to induce yet more share price depression to induce yet more flow of the cash of the investors being defrauded both well in the past and more recently in the past? The question becomes do you want more “free money” or do you want to be forced to give up some of the money you stole in the past. IN FACT, A CRIMINAL WOULD BE CRAZY TO EVER COVER UNDER THESE CIRCUMSTANCES.
Abusive naked short selling is similar to a drug binge. Once you get started even if you wanted to stop you sometimes can’t. The very act of stopping your daily “fix” of naked short sale orders would release the potential energy encased in the coiled spring you’ve been compressing while forcing the share price down day after day. If you fail to bankrupt the targeted corporation you can quickly get to a point at which you can’t cover without risking serious financial calamity. When you get to this point you typically recruit Wall Street fraternity brothers to help you polish off this feisty corporation that you theoretically have on their death bed. Once the “recruits” realize that they got sand-bagged then all kinds of things can happen. This includes covering by the recruits with lesser naked short positions and then going net long to take advantage of the blood in the water coming out of the “recruiter”. In summary, all buy orders by Main Street investors have money attached to them but all sell orders by Wall Streeters do not have meaningful delivery obligations attached to them. This asymmetry serves as another pillar supporting these crimes. Since these criminals never have to cover until forced to the aggregate size of naked short positions is accretive by nature. They get larger and larger month after month.
The single most effective way is to simply succeed in your business plan.BTI can do this!! This is so rare for companies under attack that you rarely see it. Above and beyond that there are a variety of strategies to implement at the proper time. Operating in a sector like the junior biotechnology sector that has ultra-high risk and ultra-high reward built into it helps a lot. These people have more discipline as to mitigating losses than we investors do. The hedge fund managers will continue to make gazillions of dollars as long as they don't screw up on any one deal big time. The management teams and compliance officers of the publicly traded crooked clearing firms and crooked MMs will also do quite well as long as they don't blow it real bad on any one deal or allow their shareholders to learn what they do to shareholders for a living. This series of attacks started when XXX was trading at over $2 back pre-Lipangue when they deserved to be trading at lower levels. The problem with these attacks is once you start it's tough to find the brakes when you need them. These people are collectively short many thousands of companies.Part of the goal is to get covering our naked short position to the top of their "to do" list. "Qualified" cash dividend distributions and tenders for assets that lead to qualifying dividends are the be all and end all.