Lightstream Resources Ltd. LSTMF

RE:RE:IS THIS POS GOING TO HOLD 6 ?

[heraclitus]

Stockwatch has LTS shorts as of June 1st at less than a million.  LTS was trading then at $8.50.  Oct 31st the short was 7.5 million.  Stockwatch indicates that 2.5 million shares traded today, well over one percent of the issue and it closed around $5.93 after plunging $0.36.  During the interim the news from the company has been modestly encouraging.  Three major possiblities for falling SP in a modestly encouraging environment:
                          - some nasty news the company is hiding but leaked out to a few
                          - some bet on a change in company policy expecting negative market reaction
                          - naked short strategy expecting price to plunge faster than future price recovery.
For the first - news has to be bad for this SP reaction while LTS BOD are at risk from the regulators.  The first seems doubtful. The second is unlikely because the more highly likely changes would be welcomed by the market (reduction in dividend, or sale of assets to reduce debt).  The third is the most likely. 

There may be 10 million shorts out there most of which are naked.  When the covering happens, the response will be very large volumes and significant price increase.  We ride back up.  Fast.  Indeed management, not liking the negativities of being gamed by these folks, might sweeten the pot just to catch them out by changing policy in market friendly ways or soliciting offers   Any way, my attitude is that the land position is good, the business model seems to be unfolding relatively well but the dividend is great.   I will listen tomorrow to the broadcast but will be buying again because 15% ROR to sit on this baby is manna.

There may be a fourth - someone is gaming SP in anticipation of making a hostile bid.  That would be sweet for them perhaps and me certainly