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Posted On: 05/11/2017 10:16:11 PM
Post# of 281
C'monnnn Nate. Give us the goods.
LONG TERM SURVIVORS
An important aspect of these naked short selling wars is the length of time that the victim company has been under attack. When these naked short selling "gurus that can smell a scam from 40 miles away" guess right and beat up a scam company, the company doesn't have a chance because of the vicious nature of naked short selling. The lack of assets of the company will be exposed and announced from the mountaintops.
What are interesting are the battles that ensue when these "gurus" misdiagnose a "real" company with "real" assets as a scam. The naked short sellers will still be able to knock the market cap down by 99%, but often it becomes tough to "Kill" the company. Investors that know that the company has the goods can sit back and buy shares at a tiny fraction of book value and thereby average down their previous purchases. Since the size of the naked short position is of a cumulative nature, increasing with the age of the battle, a point is reached wherein the naked short sellers cannot afford to cover this massive naked short position without driving the share price to the moon. This is when the games get really dirty because hundreds of millions of dollars are now up for grabs, winner take all
LONG TERM SURVIVORS
An important aspect of these naked short selling wars is the length of time that the victim company has been under attack. When these naked short selling "gurus that can smell a scam from 40 miles away" guess right and beat up a scam company, the company doesn't have a chance because of the vicious nature of naked short selling. The lack of assets of the company will be exposed and announced from the mountaintops.
What are interesting are the battles that ensue when these "gurus" misdiagnose a "real" company with "real" assets as a scam. The naked short sellers will still be able to knock the market cap down by 99%, but often it becomes tough to "Kill" the company. Investors that know that the company has the goods can sit back and buy shares at a tiny fraction of book value and thereby average down their previous purchases. Since the size of the naked short position is of a cumulative nature, increasing with the age of the battle, a point is reached wherein the naked short sellers cannot afford to cover this massive naked short position without driving the share price to the moon. This is when the games get really dirty because hundreds of millions of dollars are now up for grabs, winner take all
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