Royal Nickel Corp. RNKLF

RE:Forget the "shorts" It's meaningless! Totally meaningless!

[ricciswiss2018]

I am sorry to say, but I truly believe you are naive and you do not see the full picture.  Let's say any junior miner and it doesn't have to be RNX, is developing a deposit and mine and let's say their deposit structure extends over a length of 500m. Their share price let's say is at 50 cents.  Now they do 5 drill holes beyond the 500m to check if there is any mineralization behond. All 5 drill holes come back with zero and to be transparent with shareholders they put out a news release stating that.  Now this situation would be a feast for naked shortsellers to flood the stock with shorts, setting up their automated computer selling to bring this stock lower.  At the same time they are hiring bashers to spread false rumors that this company is running out of cash, that their deposit is not mineable, that some other company is entitled to their claims or that the company is being sued by a major over their claims etc.  Now with all of this the stock price tanks within hours and goes down to let's say 10 cents and only recovers slightly to 12 cents by the of trading.  Over the next few days the stock trades between 10 to 20 cents and settles at 15 cents. The bashers continue with all kinds of negative talk, most retail investors sold by now and lost interest.  Company puts out a press release within a few days that the rumours are false, however by that time most investors got burned and lost interest. Company's stock is unable to recover and stays at 15 cents.  Now this company has to raise additional capital to continue their exploration and is faced with diluting their stock and raise at a low price of 12 cents.  Needless to say now they face an uphill battle to develop their deposit which in actual reality is a first class find with great potential.  After a year the company has been driven into the ground and are forced to sell out their deposit to a major who puts in a take over offer at 16 cents and gets a steal.  This unfortunately is the fate of many promising junior mining companies who fell victim to naked short selling, which allows a trader to sell huge quantities of shares, fictional shares surpassing share capital by millions not on any inventory, whereas when we buy we always have to by from a seller who actually owns the shares.  I truly believe there is something very, very wrong with this system and each one of us should actually write and complain to IIROC to intervene and put in market surveillance that limits the manipulation of share price which is illegal.