Bob: Understand that when you are selling that which does
Bob: Understand that when you are selling that which does not exist the supply is endless. For naked shorts nirvana is to bankrupt the company by selling until the companies stock is cellar boxed with no bid and an ask of .0001. I'm sure NTEK if traded based on the laws of supply and demand would not have raised the authorized as they would not have had to. The shorts are responsible for that not the company. Now you also need to understand that the naked shorts never ever cover until forced and that rarely happens.
Paying a 15 million dollar fine to regulators as Goldman recently did is looked at by them as a cost of doing business and chump change.
So how does a company force the shorts to cover? The easiest way is to prove that the company is not only going to survive but thrive and that is what NTEK is in the process of. The spinoff of NTGL should force our brokerage firms to buyin what they were short when they realize just how short they are. Whether they will or not may in part be decided by how well the company is doing and if they are under the gun with regulators. SIRI is a good comparison because the shorts never expected to have to cover and some are still short while others continue to cover slowly. I am anxious to learn what NTEK has planned for a recapitalization plan. Are they going to spin off UltraFlix and have it IPO or will it go into a shell or have they lined up angel financing? Lots of possibilities but if you notice the share price is now holding pretty firm in a trading range as the shorts are afraid to walk it down more at this point imho. The good news is the company management realizes it is under attack and is taking steps to drive off those that are trying to cause it to fail. I'm not sure what will suddenly cause a turnaround in the short situation but the company is being embraced and supported by the giants of the industry. Can you imagine what might happen to the shorts if say an Apple were to announce it was going to be taking a position?
I'm not sure what is going to be the catalyst but I remain very confidant we have a winner and I don't think it will be a whole lot longer before there is a reversal of fortune. Hope this helps. Go NTGL!!!
NanoTech Gaming Inc. (NTGL) Stock Research Links
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