How can a company bust from short selling. If your making alot of money and your stock is next to nothing wouldn't you just take it private? If the books show it makes money won't a bank loan you the money? Are they going bust because they have loans that are based on the stock price? It squeezes share holders but how does it change what the company makes? I think MYG had this same issue and it got so low people wanted to take it private. Sure the same kind of guys that fucked it down now want to make money the other way but welcome to Wall Street were you are either a pimp, hoe, or a john.
If I'm not mistaken, don't poor managements and outright frauds blame short sellers for their crummy stock performance? If a company's fundamentals are sound and it's well operated, short sellers cannot hold the price down over longer periods of time. If the trade leans too much in one direction, I would assume some smart and deep pocketed money will come in and create one hell of a short squeeze while picking up shares on the cheap.
Short-selling cannot force a company into bankrupcy! fools Proxys should be able to keep short selling under control or simply paying a small dividend.
That prosecutor didn't know a damn thing about how the market actually works. He implied that because Amazon survived these other companies should have as well. I guess he doesn't realize that most of the thousand companies that he says went under from fraudulant manipulation just had poor business models, if any at all. A good invention or idea doesn't necessarily equal a good investment.
NSSellers can absolutely drive a company to bankrupcy. the number is over 6000. Some were bad companies, and I'm sure the management was in on some, and sold their own companies down the river. The story you saw is way ahead of what you saw. Google Valley Forge Securities and Eagletech. They had to go to Italy to get the Principal of Valley Forge. Italy, get it? Right now, there are several State Regs, AG's, etc on this. Take a look at DCTH. Stock registers a PP, and that day hits the threshold list. Google Sedona Corp, SDNA. SEC decision in 2/03 that will explain how it's done. Refco wells notice 5/13. Why do you think this is happening? Every had a stock do a pipe, and when the company announces news, the stock tanks? If you do, you have the disease, and nobody is going to help you. When three fake shares per real one, think about the money generated. Go to buyins.net, and you'll see all the lists - added, dropped, etc. What you saw tonite is the beginning. Of course, if you are clever enuf to catch a buy in, you can become rich beyond your wildest dreams. The SEC has admitted some companies have bigger fails than floats. The companies don't know that, for the DTCC won't tell them w/o a court order. But I think we have a good idea. Now to catch the cover.
Oh yeah. Dividends, proxies don't work, because as one transfer agent told me, the firms just don't send me the beneficial holders list. And also, there is something called a "window call flip". And by selling so many shares into any demand out there, the stocks collapse. Then, they can no longer borrow money at any cost. Look at Winn Dixie. When you saw the stock fade, and then see them on the threshold list, it's curtains. 23000 jobs! gone! CALM is another. Still there, but under seige. Believe me, the amount of money stolen tops a trillion, and this problem is bigger than all the others totalled. Ebbers is a piker compared to this. It's why the SEC grandfathered past fails under SHO. The buyins would kill the firms. Google MJK securities. Look who did him in. And don't pooh pah what you don't know. I don't know much, but I know this, because I took a bath in companies I knew had dynamics. Then it took three years to figure out why I got screwed. Right now Eagletech is firing Supeonas all over the place, and they are getting some tremendous discoveries. I think you'll be reading about the SEC and Eatc battles in the coming weeks. We'll see. Keep Refco on the watch. If they settle w/ the SEC, it'll look like they are getting off cheap. But justice is in the wings. A lot of folks have already been served, and I don't mean lunch.
this is not so...when you can print an unlimitted supply of paper and never have to buy it again ( close/cover)..thats the problem in most of these cases and the problem with naked short selling...there's more to it..peace
the biggest problem is that it transfers money from the USA to countries like Canada/Germany who allow this to continue...
WTF is naked short selling? How is it different from regular shorts. I suspect guys are selling shares that don't exist and therefore they never have to cover. I do remember a thread about this before.