I strongly recommend that every investor thoroughly read post # 68290 posted by AlanC. IMO it is the best explanation that I have seen of the how, who and what regarding illegal Naked Short Selling (NSS). This article is the best 6 or 7 minutes that you can use to further your investment knowledge. In order to defeat an enemy you have to know who the enemy is and what they will do before they do it.
I will point out common FUD tactics that the criminal paid bashers use regarding this topic in future posts. I would however like to point out a very common paid soft basher strategy that we all see and that attempts to blur legal covered short selling and illegal naked short selling. Soft Basher A sends out a post innocently asking what the short position is on IPIX. Soft Basher B responds with a report or number of the current published LEGAL short number that is usually 1M-3M shares. The objective of this discussion between soft bashers is to attempt to confuse IPIX investors in to thinking that there is not a short sale problem with IPIX.
I have stated several times that I believe the NSS position on IPIX is over 300M shares which is enormous on a stock with only 360M OS and has a very tightly held investor base that significantly reduces the amount of float needed for the criminals to make IPIX a trading stock. I will be repeating the following as IPIX hits milestones and SP increase but DO NOT believe that when IPIX SP climbs to $4 or $5 dollars that the “Shorts have covered”. This would be a very naïve statement as IMO it will be impossible for the criminals to cover a significant portion of their naked position without driving IPIX SP to well over $10 a share. I am including some of my personal favorite sentences from the article but I highly recommend skipping the rest of my post and invest your time in reading post # 68290 in its entirety.
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While “long” sales mean the seller owns the stock, short sales can be either “covered” or “naked”. A covered short means that the short seller has already “borrowed” or has located or arranged to borrow the shares when the short sale is made. Whereas, a naked short means the short seller is selling shares it doesn’t own and has made no arrangements to buy. The seller cannot cover or “settle” in this instance, which means they are selling “ghost” or “phantom” shares that simply do not exist without their action.
When you have the ability to sell an unlimited number of non-existent phantom shares in a publicly-traded company, you then have the power to destroy and manipulate the share price at your own will.
“global working groups” coordinate their attacks on specifically targeted companies in a “Mafia-like” strategy.
Journalists are paid off, along with social media influencers and third-party research houses that are funded by what amounts to a conspiracy. Together, they collaborate to spread lies and negative narratives to destroy a stock.
“Spoofing” and “layering” have also become pervasive techniques to avoid regulator attention. Spoofing, as the name suggests, involves short sellers creating fake selling pressure on their targeted stocks to drive prices lower. They accomplish this by submitting fake offerings in “layers” at different prices to create a mirage.
“How much has been stolen through this fraudulent system globally is anyone’s guess,” says Christian, “but the number begins with a ‘T’ (trillions).”
The naked truth is this: Investors stand no chance in the face of naked short sellers. It’s a game rigged in the favor of a sophisticated short cartel and Wall Street giants.
Naked short sellers are not motivated by moral and ethical reasons, but by profit alone. They attack good, but weak and vulnerable companies. They are not the saviors of capital markets, but the destroyers.
What happens with GameStop next could end up dictating a new form of capital markets democracy that levels the playing field and punishes the Mafia-like elements of Wall Street that have been fleecing investors and destroying companies for years.
Retail investors want to clean up capital markets, and they just might be powerful enough to do it now. That’s a serious wake-up call for both naked short sellers and the investing public.
Viva la Revolution!
I will point out common FUD tactics that the criminal paid bashers use regarding this topic in future posts. I would however like to point out a very common paid soft basher strategy that we all see and that attempts to blur legal covered short selling and illegal naked short selling. Soft Basher A sends out a post innocently asking what the short position is on IPIX. Soft Basher B responds with a report or number of the current published LEGAL short number that is usually 1M-3M shares. The objective of this discussion between soft bashers is to attempt to confuse IPIX investors in to thinking that there is not a short sale problem with IPIX.
I have stated several times that I believe the NSS position on IPIX is over 300M shares which is enormous on a stock with only 360M OS and has a very tightly held investor base that significantly reduces the amount of float needed for the criminals to make IPIX a trading stock. I will be repeating the following as IPIX hits milestones and SP increase but DO NOT believe that when IPIX SP climbs to $4 or $5 dollars that the “Shorts have covered”. This would be a very naïve statement as IMO it will be impossible for the criminals to cover a significant portion of their naked position without driving IPIX SP to well over $10 a share. I am including some of my personal favorite sentences from the article but I highly recommend skipping the rest of my post and invest your time in reading post # 68290 in its entirety.
========================================================
While “long” sales mean the seller owns the stock, short sales can be either “covered” or “naked”. A covered short means that the short seller has already “borrowed” or has located or arranged to borrow the shares when the short sale is made. Whereas, a naked short means the short seller is selling shares it doesn’t own and has made no arrangements to buy. The seller cannot cover or “settle” in this instance, which means they are selling “ghost” or “phantom” shares that simply do not exist without their action.
When you have the ability to sell an unlimited number of non-existent phantom shares in a publicly-traded company, you then have the power to destroy and manipulate the share price at your own will.
“global working groups” coordinate their attacks on specifically targeted companies in a “Mafia-like” strategy.
Journalists are paid off, along with social media influencers and third-party research houses that are funded by what amounts to a conspiracy. Together, they collaborate to spread lies and negative narratives to destroy a stock.
“Spoofing” and “layering” have also become pervasive techniques to avoid regulator attention. Spoofing, as the name suggests, involves short sellers creating fake selling pressure on their targeted stocks to drive prices lower. They accomplish this by submitting fake offerings in “layers” at different prices to create a mirage.
“How much has been stolen through this fraudulent system globally is anyone’s guess,” says Christian, “but the number begins with a ‘T’ (trillions).”
The naked truth is this: Investors stand no chance in the face of naked short sellers. It’s a game rigged in the favor of a sophisticated short cartel and Wall Street giants.
Naked short sellers are not motivated by moral and ethical reasons, but by profit alone. They attack good, but weak and vulnerable companies. They are not the saviors of capital markets, but the destroyers.
What happens with GameStop next could end up dictating a new form of capital markets democracy that levels the playing field and punishes the Mafia-like elements of Wall Street that have been fleecing investors and destroying companies for years.
Retail investors want to clean up capital markets, and they just might be powerful enough to do it now. That’s a serious wake-up call for both naked short sellers and the investing public.
Viva la Revolution!
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