It gets better and better with this one..
Grifco International, Inc. (Pink Sheets:GFCI) announced today that its Board of Directors has approved “go public” agreements with Universal Energy Resources, Inc. (“UERI”) and Precision Drilling & Exploration, Inc. (“PDEI”).
The agreements provide that upon going public UERI and PDEI are contractually obligated to enter into a share exchange with GFCI shareholders who have proof of physical ownership of GFCI shares as of a record date to be determined. The purpose of requiring proof of physical share ownership is to prevent “naked short sellers” from receiving any shares in either UERI or PDEI. As a result of the share exchange, GFCI shareholders will enjoy majority ownership of the new public companies.
Jim Dial, President of GFCI, stated, “This is consistent with our plan to create additional shareholder value for our shareholders. Both UERI and PDEI will have cleared all regulatory filings in the next 30 days. We expect both UERI and PDEI to commence trading shortly thereafter.”
This makes no sense at all and tells me that either jim dial has not once ounce of understanding on how the market works, or that he does but just wanted the flimsiest excuse to use the words "naked short sellers" in a PR to try ensnaring more people into this get shorty game he's playing or trying to play...
With a short sell, you sell shares in the hopes that it goes down, borrow them, and then buy them back later either higher or lower depending on the direction and success of your trade.
Now if I sell shares, don't own them, I'm surely not going to get a dividend, payment, shares or anything else. In fact I have to pay any dividends out to the people I sold the shares to, because the company pays the primary holder of the shares, leaving the secondary buyer (from my short sale) needing payment.
This statement makes no sense and if Jim Dial really had any idea that he was being naked shorted he'd understand the process.
Thus, there is no naked short excuse.
