The MMs short and cover in the same day. There is no grand short squeeze coming. In fact, they are required to "make the market" fluid and naked shorting is common. What is not common is naked shorting all day every day and consistently taking the price down over and over without letting the natural stock value balance out. I am not trying to side with the MMS and bashers. I am just relaying my understanding of how it all works.
They take it down early and try to buy up all the shares and then sell it on the way back up. Or they sell to you and take it down all day to cover. They make money by selling to you and buying cheaper in the same day to cover. The morning takedown (like today) also induces panic selling and lack of confidence in the stock. The cheaper the stock is trading, the more money they can make. They make the same amount of money on one ticks sells no matter what the current share price is, so by keeping the price low, they get higher share volume (sacrificing dollar volume) and more share volume means more potential profit. It is always in their best interest to trade the stock as low as possible, while they are in control. It is all still a dirty bullshit move to crush shareholder value, but it doesn't lead to a short squeeze situation. There is no failure to deliver and it takes less than one day of normal volume for them to cover what is outstanding.
I am not saying this to be a basher or whatever, I am just saying this so people that don't know, will now understand what is happening.
Shares could be borrowed and sold, but it would have to be offshore as US rules are too costly for it to be done on a grand scale. You only have to lock up your shares if you have a margin account, only then can they be borrowed. If you don't have a margin account, then legally they cannot be borrowed without your permission. Doesn't mean it can't happen, but if they are doing to do it without your permission, then why wouldn't they do it even if you locked them up.
As long as the company remains silent, we are at the mercy of the MMs and bashers. Once the MMs know that interest is back and they can't hold it down, they have to let it run, otherwise they will never be able to drive the price down to cover. In this situation, then the actual buyers and sellers make the market, not the MMs. There should be rules about naked short selling that are enforced, this would protect the natural market valuation. But the few rules are not enforced. It's a shit show and we have no control. The only thing that can stop this from happening is buying pressure which doesn't exist with the current company silence.
all IMO of course. Good luck. Still sitting on 6m+ with $50k+ loss. Planning to hold until company collapses or Q4 2018 revs are released.
They take it down early and try to buy up all the shares and then sell it on the way back up. Or they sell to you and take it down all day to cover. They make money by selling to you and buying cheaper in the same day to cover. The morning takedown (like today) also induces panic selling and lack of confidence in the stock. The cheaper the stock is trading, the more money they can make. They make the same amount of money on one ticks sells no matter what the current share price is, so by keeping the price low, they get higher share volume (sacrificing dollar volume) and more share volume means more potential profit. It is always in their best interest to trade the stock as low as possible, while they are in control. It is all still a dirty bullshit move to crush shareholder value, but it doesn't lead to a short squeeze situation. There is no failure to deliver and it takes less than one day of normal volume for them to cover what is outstanding.
I am not saying this to be a basher or whatever, I am just saying this so people that don't know, will now understand what is happening.
Shares could be borrowed and sold, but it would have to be offshore as US rules are too costly for it to be done on a grand scale. You only have to lock up your shares if you have a margin account, only then can they be borrowed. If you don't have a margin account, then legally they cannot be borrowed without your permission. Doesn't mean it can't happen, but if they are doing to do it without your permission, then why wouldn't they do it even if you locked them up.
As long as the company remains silent, we are at the mercy of the MMs and bashers. Once the MMs know that interest is back and they can't hold it down, they have to let it run, otherwise they will never be able to drive the price down to cover. In this situation, then the actual buyers and sellers make the market, not the MMs. There should be rules about naked short selling that are enforced, this would protect the natural market valuation. But the few rules are not enforced. It's a shit show and we have no control. The only thing that can stop this from happening is buying pressure which doesn't exist with the current company silence.
all IMO of course. Good luck. Still sitting on 6m+ with $50k+ loss. Planning to hold until company collapses or Q4 2018 revs are released.
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