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Re: 53chevy post# 75720

Sunday, 09/17/2006 10:08:35 AM

Sunday, September 17, 2006 10:08:35 AM

Post# of 169277
53chevy, great post!! I think you may be on to something. I would add this additional thought:

If your theory is correct, I also believe that the idea of a pps reset was further designed to "trap" the shorts. I would guess that there are a lot of people out there who may have been tempted to sell if a reset had not been planned. However, a reset totally changes the risk tolearance level of this stock. For example, those that hold a relatively small position (ie. 1000 shares) may look at it like they have very little to lose and a huge possible gain. I'd risk $1000.00 for a possible return of $25k, $40k, etc.. We all know that these stocks are risky anyway, so why not put your money in one with such huge (and promised) potential!! Also, those that can afford to maintain larger positions see this as an opportunity to become millionaires..

In short, Rufus has set this up so that the potential reward is greater than the risk.... That is why so many people will not give up their shares for anything less than HUGE $$$$. In doing so, he has essentially taken those shares away from shorts and not allowing them to cover. All IMO...
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