Strat Petroleum Ltd (SPRL)

[TraderRich]

Slice8

I agree with everything you wrote, but there are circumstances that make dealing with the shorting much more difficult than many seem to be aware of. Yes, "results, releases and financials" are ultimately the way to get shorty off ones back, but keep in mind that many/most pinks/otc's are start-up companies that need financing. Part of the shorting scam involves death spiral financing...where the financeers are the ones who initiate shorting of the stock.

Also, it's very difficult for a company to get out of a short when they have to dilute incredible amounts of shares in order to get the kind of money they need in order to conduct business long enough to attain those results, releases and financials. If shorty wasn't holding the price down the company would be able to get more financing with less dilution.

If you want to really understand what I'm talking about in greater detail, dig up what you can about Rod Young and Eagletech Communications. My very basic understanding is that this guy has/had a technology that has/had the potential to be in every person's home. His company was naked shorted into bankruptcy before his product had the chance to even make it into the market. Often times the product is the reason a company is targeted. If the management ends up in a death spiral financing situation, once the company can't keep it's agreements with the financiers (who have intentionally shorted the stock), the financeers can go after the technology if the company management wasn't aware enough to protect themselves. It probably happens more often than we are both aware.

Having written all of this, I must say that I do not yet have such a detailed understanding of naked shorting to be able to go into much more detail. There is still a lot I need to learn to be able to have a much more in-depth conversation about it.

aloha

Rich