lasernat, I didn't cover this issue in my previous message to avoid making it any longer. I agree with you that this will solve the problem but only in theory. Practically, how many shareholders will really cover? One poster mentioned that some shareholders have their accounts in negative cash after last years buyback because they haven't covered and this is one year so far. If we take an average shareholder with say 5 million shares bought recently at 0.0003 which makes $1,500 then the PPS spiked like last year and settled at an average of 0.0015 (look at the chart a year ago), how many are really willing to pay $7,125 to cover a short of shares they originally bought for $1,425? (these are just my assumptions, try yours) They won't cover unless they are really forced to (will they be?) or the price drops to levels that make it reasonable for them to cover. The interest rate will not be enough motive to cover at such prices imo.
For those who want to cover to clear their records, they will wait hoping that the price will drop to reasonable prices like last year so they cover or they wait and wait until they have to cover at high prices. However, if the float is not reduced, the low price scenario is more plausible imo because low float is what is supposed to raise the stock price at the first place besides the hoped for production. In both cases - if any covering at all - it will take many months during which the share numbers will remain multiple times the supposed 5% post-buyback.
I see last year's problem repeating again. Actions taken to correct the situation but because of bad implementation and unblocked holes, it all ended up in vain. This year we are not far from a similar scenario because of another bad implementation.
To conclude lasernat, I agree with you that covering any 95% sold short should solve the problem and bring things to balance but I do not see it happening practically at least soon and at best cases it will take many months at low and declining prices unless extreme measures are taken or good production is shown. The promised chill that didn't take place has created a loophole that could ruin the whole thing. We'll watch how things unfold anyway.
I'm short on messages so I shall not reply unless it's urgent.
GLTA
Your money, your decisions.
