They took a pasting, but consider: It ain't over yet. If they're still alive, and if this was 2002 or so, they'd reload. I don't think they have the same powers today, and because of Eagletech, certainly not tomorrow. How many thousands of companies did they totally destroy, and then they kept two to whatever multiple of the capitalization. If a 50 mm market cap goes to zero, they make more than the market cap. Elgindy was famous for pumping before he dumped. Why not. IF you're going to short it zero, start higher. So what DNDN. They lose 20 or 30 mill? Big deal. What you guys don't know, and I don't talk about them here, is the cat and mouse in OTCBB. There is at least one group that isolates Pinks or BB's where the companies hire PR guys with a following. They get in, gun the naked shorts, and leave. Those are the pennies you see go from 2 to 22. GHLT was one. Went to nine bucks from pennies. And then, if you remember, Chris Byron of the POST came out and bashed it. I 'm sure he got a "tip" it was junk. It's back to whatever. but understand, they have made millions upon millions upon millions. If you've ever seen odd selling in BB's, I use them as an example because you can see it, you'll see very irrational selling, and the offers step down into good news. You'll see maybe three, but likely two mm's do all the work. If you look at the complaint, it talks about the same people having 100 accounts. How hard is it to sell from Acme Partners Bermuda, then kite the fail to Barnyard Investments, Curacao, and so on.
It explains why taking OSTK private would not have worked. These guys were reporting sales as buys, making shares up etc. If the shares don't exist how are you going to be forced to buy it in? Basically it is a printing press, instead of counterfeiting currency they do it with stocks. Also shows that those like Crammer and that scummy sidekick that CNBC had on to debate Byrne's at the time the whole thing came to light who were saying this type of thing just didn't happen or happened to such a small extent that it was irrelevant either didn't know what the hell they were talking about or, as is more likely, are bald faced liars. The class action lawyers are going to have a field day with this stuff, and hopefully more than a few prosecutors are going to make their careers unraveling it all.
OSTK is looking for 3.5bb, Little Sedona for 2.5bb, FFH, BVF, and people were saying, how can this be the end of wall street. This isn't even the covering. Remember, these are offshore accounts. When the shit hits the fan, they disappear, and the BD's hold the sack.
So is naked shorting DNDN not a good proposition now because the company has turned out to have some prospect of good fundamentals?
There generally is a fly in the ointment before the dark side gets involved. It could be a PIPE where it was so easy to short and naked short (see Eagletech) and replace(if you wanted to, most didn't) with shares on the offering. You diluted the company to death. At the top of their game, it was so easy, they could nail anything or anybody. NYX did a secondary announced at 82, hit the sho list, hit 62. Elgindy bribed the FBI. He could access the FBI files, and could find out if the CEO was a scumbag, or did something in his past.If he had something he could use, that was his target. With DNDN, it would n't be hard to look back, track it. Biotechs generally are fair game because they need money so badly and use equity to get it. You walk right into the lair when you sign the bottom line. It the BB world, fundies DO NOT MATTER. They operate like alligators. An Agator will grab you by the arm, drag you to the bottom, and have an easy meal. These guys hit listed stuff and get it to the BB. Then, you're dead. Oh, fundies. The way they play is they punish you. Good news, you finish lower. Evenentually, the shareholders blame the company, and it gets nasty. this is where they called in the class action lawyers. You know what happens when the class action suit is filed. Google Milberg Weiss. If you take a step back and think about it, you can see how orchestrated their little world is. Start watching the reporters Byrne talks about. You draw your own conclusions. Make a list of the reporters and the stocks. You'll see. And you definitely should read Aguirres' SEC testimony. Unbelievable. So blatant. Clouseau could have figured it out. So Aguirre was fired. There is much, much more coming. But after tonight, I'm sure you get the drift. Just be sure you pay your taxes on time. There is a rather large shortfall.
http://www.law.com:80/jsp/article.jsp?id=1176282246984&pos=ataglance Notice, the testimony of the affiants, all former Gradiant employees doesn't come up. When firms get discovery, the dark side settles, or tries to. Discovery usually is the trading records, and you can see how damning they are. He mentions KKD. We were right. Yep, and magically, KKD shows up on SHO. They were always right. Ask yourself how they were that good. You'll read about that later.
If DNDN were being naked shorted then why couldn't the naked shorters create enough supply on Friday March 30th to overwhelm the market? Why did DNDN pop roughly 3-fold if there was infinite supply?
You can overwhelm them from time to time. They usually just come back and crush them. If you are reading the post GHLT .20 to nine bucks. I'm thinking, this time it's different. I heard a while ago they were going to clean up listed, and I see pockets of it. It really is up to the Prime Brokers as to how much rope they want to give these guys. See, you're looking for answers. But neither the DTCC or the SEC will even tell the companies what is failed, or x clearing. If you called Bryne, or the DNDN CEO and asked what was failed in delivery, they couldn't tell you if they wanted to. And you're looking for answers. I s a light going off in your head?
09:38 OSTK Overstock.com: Court's OK Likely in Overstock.com Stock Libel Suit-- Law.com (16.16 -0.04) Law.com reports that all that the attorneys for Overstock.com Inc. want at this point is a trial on the company's libel claims. And a trial it seems they'll get. During 75 minutes of oral arguments Tuesday, San Francisco's 1st District Court of Appeal seemed ready to let the online retailer get a full airing on its claims that a financial analysis company and a hedge fund conspired to put it out of business. "We're at the pleading stage," Justice Maria Rivera told the defendants' lawyers. "It's not time yet to decide all these various levels [of legal issues], because the evidence we have is basically skeletal." Justice Ignazio Ruvolo indicated there was evidence even "at this stage of the proceedings" that could substantiate Overstock.com's claims.