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Re: Limp biscuit post# 12412

Monday, 08/11/2014 3:26:40 PM

Monday, August 11, 2014 3:26:40 PM

Post# of 40503
It's really easy to understand in today's markets. The problem with the markets is they are designed to be manipulated.

Think about it--- everyone knows dilution is a negative influence on any stock. The ability to short is basically dilution available to those that have the money anytime they want to put it in effect. Sure they pay interest on borrowed shares but their gain more than covers the cost.

A company announcing dilution is basically telling those that short there will be more shares to "borrow". Their upper hand gets even stronger. Every share borrowed basically means two shares sold for every share bought for as long as they care to create that trend.

If a company dares to try and fight the PR battle they risk running a foul of the SEC for manipulating information to influence share price.

Sort of ironic don't you think?

The second player is the Market Maker. Remember they only want to make trades. If a stock is pushed lower, at some point people will jump in to buy---almost always! They now get to make a new run in the other direction. Over bought over sold signals simply mean more trades. They have the ability to make any trade look like a buy or a sell depending on how they show it. That's why daily short numbers mean pretty much nothing. Only numbers on the 1st and 15th are supposedly any good. Nice system if you can create one.

There's pretty much no consequences for those that write hit pieces whenever they want.

Put it all together and the only thing that matters is which way the big boys want it to go at any given time. On top of that they will get at least a respectable discount or warrant whenever they buy any special offerings.

Longs simply get to sit watch and hope we picked one that can overcome all that.
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