VGCX - Anatomy of a Short Attack Rick Rule has been around for a very very ong time and knows his stuff. Hie forte is resouce and mining companies and when Rick comments, people listen. I absolutely agree with him that the net asset value of Victoria Gold is far higher than the share price today.
And so no doubt some of the more novice investors here are probably a bit mistified by how this is even possible. Perhaps wondering why these newbie posters are suddenly showing up in droves from no where repeatedly posting the worse case scenario doom and gloom and qucikly posting short blips like "DONE", GOING BANKRUPT, etc as soon as someone else posts something helpful or positive. These doom and gloom posters are often paid bashers that are hired by and working for the instituional crooks. Go read
Appendix P, page 43 of the attachment titled, 'Confessions of a Paid Basher'. Now go through the recent posts and see which ones fit this profile....not to hard to identify them.
Well, it's not really all that much of a mystery if you understand how this crooked game is played. I mentioned in a post yesterday how the institutional crooks work together to take down / bankrupt a company, especially when a doom and gloom incident occurs like what is happening to Victoria Gold right now.
This attachment is lengthy and very detailed and although I've only posted this a few times before on other boards where I've seen similar shenanigans, it's probably a good idea that the serious VGCX share holders educate themselves as to what we're up against. The current VGCX share price attack / situation clearly applies and is described on page 10 of the attachment labelled,
'The Anatomy of a Short Attack'. s70723-20162302-331156.pdf (sec.gov) Here's just a brief excerpt:
The Anatomy of a Short Attack – Abusive shorting are not random acts of a renegade hedge funds, but rather a coordinated business plan that is carried out by a collusive consortium of hedge funds and prime brokers, with help from their friends at the DTC and major clearinghouses. Potential target companies are identified, analyzed and prioritized. The attack is planned to its most minute detail.
The plan consists of taking a large short position, then crushing the stock price, and, if possible, putting the company into bankruptcy. Bankrupting the company is a short homerun because they never have to buy real shares to cover and they don’t pay taxes on the ill-gotten gain. (See Appendix D for more on Bankrupting The Victim Company). When it is time to drive the stock price down, a blitzkrieg is unleashed against the company by a cabal of short hedge funds and prime brokers. The playbook is very similar from attack to attack, and the participating prime brokers and lead shorts are fairly consistent as well.
Typical tactics include the following:
1. Flooding the offer side of the board – Ultimately the price of a stock is found at the balance point where supply (offer) and demand (bid) for the shares find equilibrium. This equation happens every day for every stock traded. On days when more people want to buy than want to sell, the price goes up, and, conversely, when shares offered for sale exceed the demand, the price goes down.
The shorts manipulate the laws of supply and demand by flooding the offer side with counterfeit shares. They will do what has been called a short down ladder. It works as follows: Short A will sell a counterfeit share at $10. Short B will purchase that counterfeit share covering a previously open position. Short B will then offer a short (counterfeit) share at $9. Short A will hit that offer, or short B will come down and hit Short A’s $9 bid. Short A buys the share for $9, covering his open $10 short and booking a $1 profit.
By repeating this process the shorts can put the stock price in a downward spiral. If there happens to be significant long buying, then the shorts draw from their reserve of “strategic fails-to-deliver” and flood the market with an avalanche of counterfeit shares that overwhelm the buy side demand. Attack days routinely see eighty percent or more of the shares offered for sale as counterfeit. Company news days are frequently attack days since the news will “mask” the extraordinary high volume. It doesn’t matter whether it is good news or bad news.
Flooding the market with shares requires.....(read on from here in the attachment if you dare....)
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So, at this point, it doesn't much matter what the VGCX day to day price is unless you're a day trader or a short seller, because today's share price doesn't reflect the true Net Asset value of VGCX because it's being manipulated! Where's the SEC in all this? Why didn't the SEC keep the Halted Trading order in place for at least a week to allow time for the company and mining authorities to better assess this incident, then issue a joint formal press release
while keeping trading halted for another 24 hours, and then resume trading? Well the answer is quite simple really once you understand how this game is played. The SEC keeping the Trade Halt in place for a week would be fair to ALL investors, but then the institutional crooks wouldn't be able to make a fortune shorting the stock and the investment bankers wouldn't be able to make their fortune buying the distressed assets for pennies on the dollar, all at the expense of the retail investor.
Now before you VGCX short sellers try to inform me that short selling is part of investing and I should get over it, I agree that short selling has its place in the markets but when it's used in a malicious manner to try and bankrupt companies that are merely trying to survive an incident like Victoria Gold in dealing with, well that to me is bordering criminal. Kinda like defrauding an old lady out of her life savings a few hours after her husband just died. And if you think that's OK, then you really need to check your moral compass.
Once the dust settles and we all know the facts of what happened, what it's going to take to fix this, and where this company is headed next, the share price will adjust according closer to its Net Asset value. In the mean time buckle up longs because this ride isn't over yet.
My opinion only, please DYODD.
HB77