The Lowdown on MTX shorts
The latest short position on MTX show 1 million. Who in their fcuking mind would short a nickel penny stock unless you think it is going belly up?? Firstly, MTX is not going bust because it has no debts except loans owing to Chuck who has more money than God. Secondly, no shorter would be able to borrow 1 million shares to meet the "fail to deliver" rule or "IOU's". Under that rule, a short seller has to cough up or return the shares to the owner within one day of a call or demand. Thirdly, while "naked" shorting is legal in Canada, i.e. selling shares they don't own, you would be royally fcuked in a short squeeze. Why? Reverse mergers and reverse splits typically result in a change in the CUSIP, the nine-digit identification symbol assigned to a public stock. Once that CUSIP changes, the naked shorter has no apparent way to close out the naked short position. No stock under the old CUSIP number exists anymore; it all automatically converts to the new CUSIP. ...In summary, I shall confidently posit that the 1 million shorts - Anonymous was the only large seller hammering MTX from 6 cents down to 1.5 cents, presumably, through shorting - was done by Chuck himself by way of shorting his own shares clearing the way for a 1-for-10 rollback. Chuck would then close out his 1 million shorts. Currently, there are 113 million shares out which would shrink, post 1-for-10 consolidation, to 11.3 million shares. I predict he will then raise, say $1.5 - $2 million, in new financing by issuing 10 million new shares to himself, family or friends of the family at 15 or 20 cents to fund the Company........"dooby dooby doo"