Grifco Inc (GFCI)

[best2listen]

Printmail has nailed it!

Now we know where the extra shares are coming from and why the pops won't run. No need for naked shorts at all - Trans Global is the answer.

Trans Global specializes in "non-recourse, non-margin, call stock loans from 40%-90% of your stock positions value". What is that?

As I read it, Insiders (and others) can loan their stock to these traders who in turn can use the stock for various trading and hedging strategies.

Here's some information from a competitor's site about these wonderful non-recourse, non-margin, call stock loans. No filing requirements, no credit checks, Pinks are eligible at up to 55% of market value.

http://www.peacockcapital.com/Stock_Loans-officers.htm

"Here's the hedge: If the stock falls in value... ...the borrower has the option to default. The fund will accept the pledged shares as full payment with no recourse or personal liability back to the borrower. Conversely, if the stock pledged rises in value ... ...the borrower has the option to pay the total outstanding loan debt and receive back all the pledged shares. (The fund protects itself by collaring or placing its own hedge on the pledged securities.)"

"How can the lender afford to do this?
The lender specializes in securities lending and employs a variety of strategies to protect their downside risk. In all cases their strategies are proprietary."
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They hedge against the downside by manipulating the market; selling short, and selling what are, in effect, options against the stock insiders have loaned them.

Looks like Jarvis stuck them with the worthless Pittboss shell - LOL Wonder how many insider shares of Grifco are loaned out to Trans Global? They aren't featuring Grifco on their website without an outstanding loan - All just my opinion.


Thank you Printmail,
best2.