Centaurus Diamond Tech. Inc. (fka CTDT)

[bizops12]

Most of the short shares you see are due to MM's filling orders. If NITE does not own shares they can still fill an order. They can legally borrow/short shares. This is how they keep liquidity in the market. So the MM's are technically buying shares short a large part of the time. They have 3 days to purchase shares themselves to cover that position. That is the SEC rule. So a lot of the shorting each day is settled quickly and is simply a function of the MM's doing their jobs. The major issue we are facing right now with the MM's is that they are purchasing to fill orders then deliberately manipulating price back down so they can fill their short position at a lower price. They are also bid sitting at lower prices and trying to shake cheap share loose. When this happens they fill their orders first and push pps back up to again sell at a profit. This is the cycle we are seeing. Volume is still not high enough to really force their hand. As the company begins to build more awareness in the marketplace this will change. This is actually very good for us. The steady relentless climb coupled with low float is setting this up for long term success. As we hit new highs we will cross thresholds for different investment classes and groups. Some people never buy stocks under .20, others .50 or 1.00. Investment firms generally wont buy pinks. As volume increases along with pps CTDT will able to move up in the exchanges. Once they can go to NASDAQ or AMEX we will begin to see investment managers move in. Again think about the low float. If the company continues to hit milestones and brings Magnatek on line commercially the upward pressure will be enormous. At some point there will so much pressure that the company will have to consider a split just to keep liquidity on the stock. This company is a rare opportunity. Look at companies like Apple and Microsoft that started a new industry and started as penny stocks. People that bought low and held for 10 years were turned in to millionaires and billionaires. It is that slow steady climb from concept to product to market entry to market acceptance to market changing success that drove those prices and CTDT is in a position to function the exact same way. Other good news is I believe Chas fully understands this and that is where he plans on taking us.