CA Goldfields Inc (fka CAGI)

[travel489]

Slowtripper--

I read your post with much interest….please excuse my ignorance with respect to what you say about the naked short situation. From other published reports I have read recently, it appears that there are very large naked short positions in both NWWV and PLYCF.

I would really appreciate your further insight / explanation as to what all of this means to we the long position holders of one or both stocks (us), the company and those that are short or naked short. And, how do the short folks earn your reference to ‘thieves’. And, what has the TA told you about closing the net?

As I understand ‘short selling’ of a stock, someone sells a stock that isn’t theirs and receives the proceeds. They are betting that the share price declines so that when they have to make good on their sale and replace the shares, they can purchase and replace the shares for a lower price….the difference being their profit. When there are more shares shorted than are available for ‘re-purchase’ the term ‘naked short’ is slapped on the situation.

So, in our situation, it would seem that those people who have shorted shares on the way down from recent highs…especially at levels of .05 to .15….would be willing to buy anything at this time as long as it is below their ‘short price’. I guess there could be folks who have shorted at .02, but it would seem that their short price averages are much higher….just guessing. They would still be pocketing a substantial difference.

In the end, isn’t it the short seller that has taken the risk and stands to lose their shirt? I don’t think the unknowing stockholder whose shares were used in the original short sale is at any risk. Nor is the company…but, correct me if I am wrong. Doesn’t the transfer agent bear some risk / responsibility for selling shares that weren’t there for sale?

If my assumptions / understanding is correct, then what’s all the concern about over the short positions? The short seller is just left holding their own bag which they have to use to pay back what they have once received as a result of their short sales.

Finally, as I understand it, shares held in non-margin accounts and IRS’s cannot be used by a broker in a short sale; thus, protecting the original owner of the shares from being involved in an unknown / short sale of their shares…correct?