Megas World

[mastaflash]

More DeCosta: The development stage yet to be cash flow positive biomedical companies are the perfect targets for NSS attacks. They have high monthly burn rates and there is no way they can become cash flow positive for many years due to how the FDA process works. Abusive naked short sellers can easily flood their share structures with failures to deliver (FTDs) that procreate the “accounting measures” known as “securities entitlements” that UCC Article 8 unfortunately made readily sellable due to the assumed short term nature of any delivery delay at the DTCC. All securities fraudsters have to do is to refuse to deliver that which they sell and a self-fulfilling prophecy can easily be accessed. As the readily sellable “securities entitlements” stack up the share price of the company under attack has to implode since the sum of the “supply” of readily sellable “shares” plus the “supply” of readily sellable “securities entitlements” gets artificially manipulated upwards. “Supply” and “demand” forces still interact to determine share prices through a process known as “price discovery” but these two variables are easily manipulated. The share price can easily be manipulated into a self-propagating death spiral. Non-cash flow positive biomeds like Dendreon can thus be forced to raise money to pay their expensive monthly burn rates at often steep discounts (due to the implied risk of financing a company whose share price is in a death spiral) to ever-decreasing share price levels. If they ever do survive their attack and become successful then their future earnings per share will be small because of the gazillions of shares they will have outstanding by the time they become cash flow positive. More mature cash flow positive corporations can always buy back and cancel their shares when their share price becomes ridiculously low. The Dendreons of the world don’t have this luxury. The crooks know that it would make no sense for Dendreon to sell shares at steep discounts to market and use that cash to buy back shares at market levels. It’s tough for the Dendreons of the world to sell a piece of their company for cash UNTIL their cancer cure is well proven which takes time and money and therefore dilution. The combination of a high monthly burn rate and the predictable inability to become cash flow positive for extended periods of time is what these criminals crave. The choice of going after companies with prospective cancer cures gives us all a little bit of insight into the hearts and souls (or lack thereof) of these crooks. Their recent targeting of a company that retrofits Humvees to better sustain the effects of IEDs used in Iraq to maim and kill our soldiers is equally appalling. The collateral damage involving the taking down of our entire financial system in order for these crooks to cash in on attacking certain banks perceived to be defenseless at the time was also very inspiring. Kudos to Patrick for the charts clearly showing the astronomic increase in the levels of FTDs right as the share prices of these targeted corporations fell off the cliff.

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