Sulja Bros. Building Supplies, Ltd (SLJB)

[THEKOOKBOOK]

Laptop...

Yes the shares you own are real and the brokers do have to back them. I also agree with Qaswaseas that some of the volume can be MM's flipping positions with the week. But it is clear just when you start to add the numbers up that there are more shares floating around here then 500 million. The company has said multiple times that they are not diluting, so the only logical explanation would be that some of the old short position is still out there.

As for the dividend if the company offers it the shorts have to pay it to the people that own the Phantom Shares. For example if there is a naked short position of 100 million shares here and the company offers a .02 cent a share dividend, then the company is only going to pay it to the 500 million authorized shares that legally exist. The people who shorted the other 100 million would have to pay the dividend to those that hold those phantom shares.

This usually is enough of an incentive for the shorts to cover their open position. Because otherwise if the dividend is quarterly they literally have to pay cash out of their pockets 4 times a year to keep the position open. Imagine if you had to pay 1,000 dollars 4 times a year to keep your long position in a stock...what would you do? Probably close your position in the stock.

I don't want to start rambling here but stay with me if you want. Does anyone else see the huge glitch in our financial system or am I just crazy? How can shorting at all be a legal practice? Think about it for a second. Shorting is selling something that you don't legally own and taking the cash for it. That alone is a scary thought but it is the repercussions of shorting that are even more alarming. The stock market is supposed to be run based on the principles of supply and demand. More demand for a stock, the price goes up, more supply then demand the stock goes down. However when you are shorting a stock you are adding more supply to the equation by printing IOU shares. Thus you are throwing out the window the true principles of supply and demand because you are directly effecting the supply side, and can keep adding more supply to bring the price of a stock down.

How this whole thing was ever made legal is beyond me. But the more I dig into the whole issue, the more I feel like I have been had in the U.S. stock market since day 1...

If you want to learn more about how this all works go to this site and watch this video...it is a bit lengthy but worth every second:

http://www.businessjive.com/nss/darkside.html

The Kook Book

P.S. The SEC and DTCC have let the American public down. Plain and Simple!